Regulatory Alerts2024-04-25
Capital Raising Options for Businesses
The Capital Markets Authority of Uganda (CMA Uganda) outlines two primary public equity fundraising pathways for domestic businesses—Public Offer of Equities Without Listing and Public Offer of Equities Followed by Listing—and details their respective costs, regulatory requirements, and liquidity implications. The first pathway provides a lower-cost, flexible alternative for raising between two and ten billion Ugandan shillings without immediate stock exchange listing, whereas the second enables significant capital acquisition and broader investor access at the expense of higher compliance burdens and mandatory lock-up periods. Companies must demonstrate sustained profitability, transparent financial reporting, reliable revenue streams, competent management, and strict regulatory compliance to successfully attract public investment under CMA oversight.