MTN Uganda floats 4.5 billion shares to the public

MTN Uganda floats 4.5 billion shares to the public

MTN Uganda, the largest telecom company in Uganda, announced the opening of its initial public offer (IPO) of 20% of its ordinary shares, following approvals by the Capital Markets Authority of Uganda (CMA) and Uganda Securities Exchange (USE).

According to the company, the offer for sale is 4,477,808,848 ordinary shares with a par value of UGX 1 each at an offer price of UGX 200 per share, and listing of the entire issued share capital of MTN Uganda Limited on the Main Investment Market Segment of USE.

The offer opened yesterday (Monday 11 October 2021) and will close on Monday 22 November 2021. MTN Group currently holds 96% of MTN Uganda.

“With the opening of the IPO we are one step closer to our goal of broad ownership of our business across the Ugandan population,” said MTN Uganda Chief Executive Officer Wim Vanhelleputte. “Our m-IPO initiative is the country’s first paper-free IPO platform aimed at retail investors, in partnership with the USE, and will help position Uganda at the forefront of digitising the capital markets for Africa,” he added.

Yolanda Cuba, MTN Group Vice President for Southern and East Africa, said the IPO would give Ugandans an opportunity to participate in the ownership of their country’s leading mobile operator and, in doing so, help deepen Uganda’s capital markets.

The IPO includes a broad share incentive scheme and Ugandan retail investors in particular using the m-IPO channel are eligible to receive 10 additional incentive shares for every 100 shares applied for and allocated in the IPO.

MTN Uganda started operating in 1998. In the first half of 2021, it had 14.9 million subscribers, 8.6 million Mobile Money users, and 4.7 million active data users.