MTN Uganda has chosen Kenyan investment bank Dyer and Blair to help with its initial public offering (IPO), which will likely result in hefty fees for the firm.
The $250 million IPO opened on Monday, with investors able to apply for shares through SBG Securities, a subsidiary of South Africa's Stanbic Holdings Plc, and Dyer and Blair, the lead retail broker.
According to MTN Group's IPO prospectus, the company has appointed various firms to assist with the IPO, including SBG Securities Uganda Limited as transaction adviser and lead sponsoring broker, S&L Advocates as legal advisers, KPMG Certified Public Accountants as reporting accountant, Crested Stocks and Securities Limited, and Dyer and Blair Uganda Limited as lead retail brokers.
Brokers will earn commissions based on the shares they sell, with the exact commission Dyer and Blair will attract compared to the possible number of shares sold unclear.
MTN Uganda has revealed that the legal adviser S&L will take home Ush1 billion (approximately $280,000), while the transaction adviser SBG securities will pocket Ush7.4 billion ($2 million).
Reporting accountants KPMG will earn Ush328 million ($92,000), and MTN will pay Ush1 billion ($280,000) to the Ugandan Capital Markets regulator for approval. Placement fees at the Kampala bourse are set at Ush9.8 billion ($2.7 million).
