Will NIC IPO Be Worth Of Investing?

You have read, heard or even told others that national Insurance Corporation wants to sell its shares to the public during the Initial public Offer it has planned for long. Indeed it is true and most probably this year it is going to be real and it is what most of us are yearning for.

In the minds of many, however, since there has been and there is a global crisis, the question about this IPO is, "will it be successful and will investors surely gain?" we all know that the last IPO that we have seen did not give good results. (Those who participated in SafariCom IPO). But remember this was the stock which was listed on the foreign market-The Nirobi Stock Exchange(NSE) thus there was a fluctuation in the exchange rate which made those who were refunded to lose some of there money. The problem was that during the purchase of the shares, the transactions had to be carried out with the Kenyan shilling which raised its demand, there by becoming expensive to buy at as high as 1Ushs=28Kshs. At the time of refund due to share over subscription, the kshs had dropped to as low as Kshs23. This means that there was a loss of Kshs5 per share refunded. However, the NIC IPO is a domestic stock thus will not be affected by the exchange rate. In any case the domestic IPOs in Uganda have been registering success. Once this chance comes, let us all use it and invest to enjoy the benefits of IPOs most especially those who missed out the Stanbic IPO. Being a young market, the Uganda Securities Exchange (USE) is an ideal for those who wish to accumulat wealth. let us start the new year 2009 in style and with a greater sense of investing to develop our economy.

With the cross-listing of kenya Commercial Bank (KCB) on the USE and now with the anticipated coming of NIC IPO, it is an indication that the capital markets are growing. don't you wish to grow with those who are growing?, or you want to be a laggard-watch while others grow. I think investing now for long term is an ideal for all ugandans because once the depression is over, those who will have invested wioll gain. However, remeber to seek stock broker advice before reaching a decision to invest. With NIC IPO, read the prospectus carefully and seek any relevant information necessary to you as an invesor. Otherwise it will be worth for you if well evaluated and anaysed.