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Frequently Asked Questions (FAQ’s)

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A share/stock is a unit of ownership in a company.

Stocks /shares also referred to as Securities are traded on the Uganda Securities Exchange which serves as the Stock Market.

A rights issue allows a company to raise additional capital from shareholders. The company offers existing shareholders the rights to purchase additional shares of the company at a given price, which is a discount to the prevailing market price of the shares during a stipulated period.

An IPO is a first time (primary offer) company offer of shares to the public while a Rights issue is a secondary offer of additional shares to existing shareholders at a discounted price.

A Share is available on the market at a prevailing market price while Rights are options given to existing shareholders to purchase additional new shares at a discounted price. While both the Rights and Shares are tradable, rights can only be exercised/traded or renounced during the Rights offer period.

The proceeds from the rights issue will be used to fund the Company’s Expansion plan for a new Warehouse, Factory and Office Block to increase its Printing Capacity and enable further investment in the Radio and TV Stations

New Vision Rights Offer period is open from July 10th 2008 – August 7th 2008. NOTE: After the 7th of August, one will not be able to exercise their rights.

All shareholders who held New Vision Shares as at June 26th qualify for the rights. These Shareholders will receive a Provisional Allotment Letter from the company, showing how many shares they held as of that date and how many new shares they are entitled to.

Yes. The Rights will be trading at the Uganda Securities Exchange. Any interested party can participate in the Rights Issue by acquiring those Rights through one’s broker agent. Trading will commence at 10.00 am on July 10th 2008 and will close at 12.00 pm on August 7th 2008.

Depending on whether you are an existing shareholder or not, you can first approach your broker and seek advice on what your options are. For an existing shareholder, since you are entitled to rights, you can exercise or renounce them through your broker agent. For a non existing shareholder you must approach your broker and express interest in purchasing the Rights off the market.

As a shareholder you benefit when you ensure that your percentage holding in the company is not diluted by exercising your Rights. All who exercise their rights, or who buy off the market benefit by getting rights at a discounted price from the current share price.

For every (2) two shares one has, they will be entitled to (1) one additional share.  Every shareholder will be advised on his current shareholding and resulting entitlement.

To apply for Rights, an existing shareholder must effect payment for the rights entitled to or applied for and submit filled out application forms (PAL’s) to their broker agent with evidence of payment attached to the PAL.

A PAL-Provisional Allotment Letter is the form used to exercise ones rights. It will be forwarded to all existing shareholders .It clearly outlines the number of shares one currently holds and how many rights they are entitled to.

The PAL form together with the Information Memorandum will be forwarded to all shareholders’ postal addresses. Other participants buying rights off the market will get the respective PAL form from their broker Agents.

There are currently 6 licensed brokerage firms. These include; Dyer and Blair Uganda Ltd, African Alliance Uganda, MBEA Brokerage Services(u) Ltd, Equity Stock Brokers, Renaissance Capital, Crane Financial Services and Baroda Capital Markets

The Rights price is Ushs. 1,100 per share

A shareholder may transfer their Rights only to members of their immediate family as per the procedure outlined in the Information Memorandum. Immediate family would be either one’s mother, father, sister, brother or child.

One can seek available financing if one is keen to purchase the rights, or renounce one’s rights and sell them on the Rights trading counter.

If the money raised does not translate into increased profits, the Earnings per Share are likely to decrease, subsequently decreasing the share price on the stock market.

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After the closure of the issue, the results will be made public on August 22nd. Rights should officially start trading on September 8th, 2008.

The increase in shares increases the supply on the market and may result in the share price dropping due to the dilution of the already existing shares.