MTN lists in Uganda – but subscriptions underwhelm

MTN lists in Uganda – but subscriptions underwhelm

MTN Uganda is today proceeding with the listing of its 22.4 billion ordinary shares on the Uganda Securities Exchange (USE), with trading commencing immediately.

The listing has received the requisite approvals from the Capital Markets Authority in Uganda and the USE, and follows what the operator describes as “the largest initial public offering in Uganda’s history, raising a record UGX535 billion from applications for 2.9 billion shares (including incentive shares).”

MTN Uganda Chairman Mr. Charles Mbire hailed the “successful completion of the offer”, claiming that it showed “the confidence that Ugandans and other investors have in the company, its brand and its strategic intent.”

“We commend all the regulators for their support in our work to become a USE-listed company and to comply in a timely manner with the listing provisions of the national telecommunications operators’ licence,” added Mbire.

TeleGeography notes that the operator’s upbeat attitude belies the fact that it had hope to attract 4.5 billion shares with the offer, but achieved subscriptions of less than two-thirds of this target.

Following the share offer, South Africa-headquartered MTN Group reduced its holding in its Ugandan subsidiary from 96% to 83.05%. This aligns with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans, with a compliance deadline of mid-2022.

“With this listing, MTN Uganda becomes the Ugandan stock with the largest market capitalisation on the USE,” said MTN Group President and CEO Ralph Mupita. “We are very encouraged to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country.”

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