Is the Umeme IPO a Bargain?

Photo by Stefan Gara

It’s been a long dry spell for Ugandan IPOs. The Uganda Securities Exchange hasn’t seen a new local listing since the National Insurance Company floated some shares back in March 2010 – more than two and a half years ago.

So, when the national electricity distribution company, Umeme, launched its IPO last week it created plenty of buzz in Kampala.

Should retail investors sign up for some shares? Or should they avoid them like a live wire?