This archive report was first published on 4 November 2021.
On November 4, 2021, MTN Uganda kicked off a marketing blitz for its Initial Public Offering (IPO) in Kenya, meeting with professional groups and retail investors in Nairobi to boost subscription.
The IPO, valued at 27.6 billion Ugandan shillings ($250 million), opened mid-last month and closes on November 22.
According to MTN Uganda, the Capital Markets Authority (CMA) of Kenya has provided its 'no objection' for the IPO to be marketed in Kenya, allowing the marketing of shares to both professional investors and retail investors.
Investors can apply for shares through SBG Securities, a subsidiary of South Africa's Stanbic Holdings Plc, and Dyer and Blair, the lead retail broker.
The IPO is open to Kenyan and Ugandan investors, as well as citizens of other East African Community member states, with a minimum investment of 500 shares, pegged at Sh3,137.
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.
South Africa's MTN Group is selling 4.47 billion shares, or a fifth of its stake in its Ugandan subsidiary, to investors at a price equivalent to Sh6.2 (Ush200) apiece.
As an added incentive, all East Africans who apply for shares will receive 5 bonus shares for every 100 shares they are allocated.
