kampala. Stanbic bank Uganda’s listing has seen both investors and the stock exchange benefiting over the last seven years, according to Uganda Securities Exchange (USE).
USE explains that Stanbic Bank Uganda has expanded the size of the stock exchange while to shareholders they have made capital gains and have received dividend payment from the bank since it listed on the stock exchange.
Addressing analysts and financial journalists on Monday at the bank’s premises, the USE chief executive officer, Mr Paul Bwiso, said: “Stanbic Bank Uganda’s contribution to the stock exchange has been so immense in terms of values, they have added the market size of the exchange and they have paid out dividend consistently without fail since its listing to shareholders.”
Mr Bwiso added: “They (Stanbic Bank) have grown by 142 per cent in terms of market capitalisation, they are the largest locally listed company and have been performing well since its listing. So both the investors and the stock exchange have benefited from it.”
At the time of Initial Public Offering on USE seven years ago, Stanbic Bank Uganda had 10 billion shares which translated into capitalisation of Shs700 billion at a price of Shs70 per share.
Mr Bwiso said Stanbic Bank now has 51 billion shares in the market. As a result, two times bonus issue to its shareholders, its total market capitalisation as of end of March 2015 was Shs1.74 trillion, up from Shs1.53 trillion in quarter one of 2014.
In terms of price change, Mr Bwiso said Stanbic Bank’s share prices have grown over the last one year, trading at Shs34 per share in quarter one of 2015 compared to Shs30 in quarter one of 2014.
Computed statistics shows that in the first quarter of 2015, Stanbic Bank counter had the largest number of deals with 565 deals, representing 44.28 per cent of the total market activity in the first quarter. Umeme had 435 deals of the total deals.
Stanbic Uganda CEO Patrick Mweheri said the bank is scheduled to pay out 50 per cent in dividends to the shareholders out of the profit of Shs135 million it made in 2014.
SOURCE: Daily Monitor