No forex losses when it lists at the NSE via introduction!

Uganda: Umeme Wins Again in Messy Electricity Sector

Just days after a parliamentary committee recommended termination of its contract over inflated claims, Umeme is set to again raise the cost of electricity to consumers

Ugandans have just days to Dec.07 when review of the application from the nation's sole electricity distributor, Umeme, ends and it gets another nod from the government to raise consumer tariffs. The move is a direct snub to the latest report by the Members of Parliament recommending the cancellation of the contracts of power distributor, Umeme and generator, Eskom. It is also the latest example of confusion that haunts the electricity sector.

http://allafrica.com/sto...212030109.html?viewall=1

Yeah just explain how those forex losses will be occurring without creating arbitrage opportunities?

Kenyans bought the Umeme shares in UGX. The conversion rate at the time vs today was in favor of the Ugandans. If a Kenyan bought Umeme at UGX 275 during the IPO but sold them at UGX 275 today, the net KES received would be less than what he paid. The UGX has depreciated vs the KES since the payment was made for the IPO.

Arbitrage: It is unlikely to make much (if anything) because the trading costs are very high. Suppose you as a Kenyan can buy on the USE (change KES to UGX, then pay commissions on the trade) then sell on the NSE (receive KES & pay commissions) means the differential has to be at least 5% just to break-even.

@UGX 275 on a volume of a whooping 15,000,000 shares. Its literally the only share trading in USE Report link

Then read the fx loss here link

You too are getting desperate the high volumes you are seeing are institutions snapping everything from Ugandan retail investors who received discounts on IPO shares because they were Umemes customers...they're already in the money...remember institutions never received their full allocation I thought I posted the IPO results here by the time this thing lists at the NSE my returns will be in double digits...demand outweighs supply at the moment!!! Just look at the top 10 shareholders...the likes of Standard Bank PLC...Allan Gray...IFC...NSSF of Uganda and some prominent hedge funds pop up...this is not Britak or Safcom!