Uganda Clays Ltd (UCL) was listed on the USE on the 18th of January 2000 becoming the first equity to be listed on the Exchange.
UCL shares were 15% oversubscribed representing the market's readiness for more trading.
Uganda Clays Ltd (UCL) is a public limited liability company incorporated under the laws of Uganda with 900,000,000 authorized and fully paid up ordinary shares of Ushs.1 each, representing a nominal value of Ushs. 900,000,000.
As of the 12th of September, 2002, UCL had a capitalization of Ushs.2.3 billion on the USE.
UCL is a major supplier of clay products in the housing and construction industry. Its main business is production and sale of roofing tiles, walling and other building materials, and decorative clay products. With a reputation for being producers of high quality products and using a dedicated and stable labour force; Uganda Clays Ltd (UCL) boasts of a better raw material base than many of its competitors and consequently prices its products competitively.
UCL estimated a market share of 52%for tiles and 15% for bricks (as of 2000), a figure they expected to grow.
A brief history
UCL was incorporated in 1950 as a private limited company by the Georgiadis Greek Cypriot family.
In 1956 all ordinary shares in the company were acquired by Westomat- a company based in Switzerland.
In the period following until 1996, Westomat transferred ownership to NHCC, White Tower Corporation and Charles Schaefer in a series of actions.
In 1998 the Government Of Uganda decided to sell to the general public its holding of 374,995 ordinary shares held by NHCC, together with 5 shares held by nominees of NHCC-UCL had been given Class 4 status meaning that government was to fully divest its interest in the company.
In 1999 UCL was constituted into a public limited liability company and its Memorandum and Articles of Association were amended to reflect the change.
This was followed by the Listing of the company on the-by then newly formed-USE within the provisions of the laid down by the Capital Markets Authority Statute, 1996.
Source: UCL Prospectus 1999
The Government's objectives for the Divestiture of UCL include:
- Enabling members of the general public, institution investors, employees and other interested parties in the equity of UCL, thereby encouraging wide ownership of shares;
- Enhancing investor and general public awareness of UCL;
- Enhancing the image and status of UCL and providing access to cheaper funding from the capital markets to facilitate its future growth;
- Fostering the growth of capital markets, particularly the USE, hence providing a market for shareholders to realize their investment in UCL;
- Fostering the growth of the housing and construction sector.