Yes, there are forex losses. Do you need an explanation or will you do some reading then think through it logically? If you still do not understand then please let me know.

Umeme share price closes 9% higher from shs275 to shs300. 400,000shares traded valued at shs120m

“There was demand of close to eight million shares at prices of Ush300 plus at the close of trading,” said Mr Kitariko in a telephone interview.
African Alliance Uganda was the lead sponsoring broker for the IPO, which was oversubscribed by 36.9 per cent.

You can read the rest of the story here http://www.businessdaily.../-/q5o1d9z/-/index.html which is full of basic errors i.e the writer doesn't even know the listing price of Umeme!

So at the IPO price? And if you are a Kenyan, then it is a loss as the UGX has dropped vs the KES.

So what's you point? For Kenyan shareholders at the IPO price [at the time of the IPO], it is a net loss. They did not get the discount. The guys buying today at buying at a weaker UGX while the poor (retail) Kenyans are OUT OF THE MONEY.

The problem here is you are basing your investment decisions on minute things...neglible...lets talk a year from now weather the same investor will be complaining from negligible forex losses! My advice to this investor is to take advantage of this forex anomaly and buy more for less! The returns will speak for themselves in terms of dividends and capital gains...we all know Umemes future is bright...look at the hydrocarbons under lake albert...this is a pure oil play...thats why you see big guys snapping up the shares...they know the future is bright..i will be doing that when ever i have funds!

So the forex losses are "neglible"? Interesting. Please ask those who invested in Ghana when the GHc/USD was 1.50 & is now 1.90 (& getting worse!). The UGX/USD was 1,600 about 2 years ago & is now 2,700 and is this a 'negligible' difference?

Oil: UMEME is a 'distributor' like KPLC. It does not directly benefit from the oil production. The oil refinery is likely to produce its own electricity/power for a consistent & reliable supply. In any case, significant oil production is at least 2 years (2014) away. The oil refinery (if built) is at least 4 years (2016) from significant production.

Forex Anomaly: As I mention (over & over) that I asked about those Kenyans who invested in Umeme at the IPO not necessarily those who are investing now. It is irrelevant to an investor who has no more cash to invest what the price of the UGX/Umeme is at the moment since he is fully invested.

Like many shares, a fall in the price (whether in KES or UGX) may be a chance to get in but it does not help those already in at a higher price.

Conclusion: IMHO, at the moment, for a period of 1 year, for the KENYAN investor, buying KPLC at KES 16.50 is a better deal than buying Umeme at UGX 275 after the transaction (forex conversion & commissions) are considered.

Stop being vacuous. And this is my last post on this matter to your responses until there is a significant event.
1) I looked at TODAY's opportunity. One cannot go back in time to invest, disinvest or not invest. It is irrelevant what price KPLC was in 2010 or 2011 or even 5th Dec 2012 since today is 6th Dec 2012.
2) BTW, KPLC issued a bonus at some point after the Rights Issue so your 19.50 [which is not germane to today's investment opportunity] is not correct either.
3) I am not saying "buy KPLC" but I was comparing the Kenyan equivalent to UMEME & I feel KPLC is a better buy today for a Kenyan investor than UMEME.
4) I am no expert on forex movements. I referred to Ghana's Cedi which depreciated substantially since 2011 despite the oil production (with one of Africa's most transparent frameworks) which started in 2011 & increased in 2012. Uganda in contrast has less transparency in it's oil production agreements & utilization of proceeds. After Heritage paid $400mn in Capital Gains Tax, Museveni went out & bought jet fighters from Ukraine.

Good Luck!

Someone is really accumulating this stock...approx 9mn shares traded today. Outstanding Bids now at 6.8Mn against outstanding offers of 587K. I hope my order went through

UMEME 3Q 2012 EARNINGS

Umeme announces strong operating and financial results as it prepares for its cross listing on the Nairobi Securities Exchange.

Kampala 10th December 2012: Umeme Limited this morning announced its results for first nine months of 2012 ahead of its formal application for a cross-listing on the Nairobi Securities Exchange. Announcing the results Managing Director Charles Chapman said "We are extremely proud of these results which are a result of the hard work and commitment of all our staff, our strong partnership with our customers, regulator, sector partners and increased investment in generation."

Mr. Chapman added "With the successful rollout of prepayment metering underway, as well as the new 'TouchPay' (mobile bill payment) platform, we are registering significant improvements in customer service which will continue to be a key focus for the business." During the nine month period the company; 1. Expanded prepayment metering and grew the customer base to 494,000; 2. Registered gains in the fight against power theft with energy losses down to 26% from 27% at the end of 2011; 3. Recorded revenue growth of 64% with a collection rate of 94%, despite the large tariff increase at the start of the year due to removal of government subsidies for electricity generation; 4. Sold 1,435GWh of power with over 10% higher sales since the Bujagali Hydropower project came on-stream; 5. Invested USD25 million in improving the distribution network; and 6. Generated net cash flows from operating activities of Ushs 50 billion. As a result of the above performance Umeme's Earnings Before Interest Tax, Depreciation and Amortisation (EBITDA) for the nine month period to 30th September 2012 was over UGX 97 billion.

Umeme recently completed its successful Initial Public Offer with a listing on the Uganda Securities Exchange which was 37% over subscribed. End About Umeme Umeme is the largest electricity distribution company in Uganda. Umeme is mandated to: Operate, maintain, upgrade and expand the distribution network Retail electricity to its customers Improve efficiency within the electricity distribution system Since commencement of its operations in 2005, the company has invested over USD134m in the distribution system, increased the customer base from 250,000 to about 460,000 customers, reduced energy losses from over 38% to 27% and increased revenue collections from 75% to over 98% by December 2011. Umeme directly employs over 1,300 staff. Umeme's 2011 annual report reflected a 32 per cent growth in earnings before Interest Taxation Depreciation & Amortization (EBITDA) before exchange differences of UGX 103.6 billion, up from UGX 71.2 billion in 2010. Profits before tax grew from UGX 6.4 billion in 2010 to UGX 44.6 billion in 2011. Following an Initial Public Offering of 38.3% shares Umeme was listed on the Uganda Securities Exchange on 30th November 2012.

The majority shareholder remains Actis the emerging markets private equity firm with a total of USD5bn funds under its management. For more details about Umeme, visit: www.umeme.co.ug For more information on this Press Release please contact: Henry Rugamba Head of Communication Email: henry.rugamba@umeme.co.ug Tel: +256 781 236 099/ +256 312 360 600