This archive report was first published on 5 October 2021.
MTN Uganda is set to make history in the East African market with its Sh132 billion initial public offer (IPO), which will be open to Kenyan and other East African investors.
According to the telecom's chairman, Charles Mbire, the IPO is a major step towards delivering on the company's plan to list on the Uganda Securities Exchange (USE).
MTN Uganda, a subsidiary of the South African MTN Group, has received regulatory approvals to list 20 percent of its shareholding, which is expected to boost the number of retail investors at the USE from about 40,000 to 200,000 investors.
The listing will make MTN Uganda the second publicly traded telecom in the East African Community (EAC) after Safaricom's IPO on the Nairobi Securities Exchange in 2008.
Uganda's Capital Markets Authority (CMA) has confirmed that the IPO is expected to raise about Sh132 billion ($1.2 billion), with the funds being raised primarily through a digital paperless/green platform, which is the first of its kind in East Africa.
MTN Uganda will disclose details of the offer in its prospectus to be released on October 11, 2021.
On October 5, 2021, MTN Uganda chairman Charles Mbire told reporters, "The intention to float announcement is a major step towards delivering on our plan to list on the USE."
