MTN Uganda announces planned flotation of 20 percent of its shares on USE

MTN Uganda announces planned flotation of 20 percent of its shares on USE

In what could be the largest IPO in Uganda to date, MTN Uganda has announced its intention to float 20 percent of its shares on the Uganda Securities Exchange (USE).

In something of a first for East Africa, the flotation will be delivered primarily through a digital paperless/green platform.

MTN says the offer and listing of MTN Uganda is in line with MTN Group’s plans to drive local ownership in the markets within which MTN operates. It is also in line with the provisions of MTN Uganda’s licence, which require its listing by the end of June 2022.

This announcement follows the requisite approval by the Capital Markets Authority and USE for MTN Group to sell 20 percent of its shareholding in MTN Uganda to the public. MTN Group owns 96 percent of MTN Uganda.

MTN Uganda began its rollout in 1998. It currently covers 97 percent of the country’s population and has over 6,000km of fibre connectivity to provide the voice and data bandwidth that connects more than 15 million subscribers not only within the country but also across the world.

Mobile penetration in Uganda has grown from 0.27 percent in 1998 to 67 percent by March 2021. MTN Mobile Money (MoMo) was introduced in Uganda in 2009.

The company says that it has over 1,000 direct employees and employs another 150,000 indirectly. Through its distribution network, it says it provides a livelihood to more than 500,000 people, making MTN one of the largest employers in the country.