On October 11th, 2021, MTN Uganda launched its Initial Public Offering (IPO), marking a significant milestone in the company's localization agenda. The IPO, which is being spearheaded in Kenya by SBG Securities and Dyer and Blair, aims to raise funds for the company's growth and development.
The MTN Uganda IPO offers 4.4 billion ordinary shares, accounting for a 20% stake of the company, at a price of UGX 200.00 (KES6.25) per share. Each prospective shareholder must apply for at least 500 shares, resulting in a minimum investment of UGX 100,000 (KES3,125) per shareholder.
Kenyan investors will require a valid identification national ID or passport to open a Securities Central Depository (SCD) account at the Uganda Securities Exchange (USE) to apply for the MTN Uganda IPO. All East Africans who apply for shares will receive 5 bonus shares for every 100 shares they are allocated.
Speaking to analysts and the media, MTN Uganda Chief Executive Officer Wim Vanhelleputte emphasized the importance of localizing the company's priorities to align with the development agendas of its operating markets, particularly in Africa.
"We are prioritizing local investors with the goal of giving Ugandans and indeed East Africans the opportunity to own part of the company," said Vanhelleputte. He added that Uganda is the fourth MTN operating market to get listed in Africa.
MTN Uganda's IPO prospectus has been approved by the Uganda Capital Markets Authority. The IPO will close on November 22nd, 2021, at 4pm EAT.
