This archive report was first published on 4 November 2021.
On October 11th, 2021, MTN Uganda opened its Initial Public Offering (IPO) in Uganda, marking a significant milestone in the company's history. The IPO has now been approved by Kenya's Capital Markets Authority (CMAK) for marketing in Kenya, paving the way for both professional and retail investors to participate.
The marketing of the IPO in Kenya is being spearheaded by SBG Securities and Dyer and Blair, two licensed market intermediaries in Kenya, in collaboration with their respective affiliates in Uganda. SBG Securities Uganda Limited is serving as the Transaction Advisor and Lead Sponsoring Broker for the MTN Uganda IPO, working closely with SBG Securities Limited in Kenya to market the IPO.
MTN Uganda's IPO offers 4.4 billion ordinary shares, representing a 20% stake in the company, at a price of UGX 200.00 per share. Each prospective shareholder must apply for at least 500 shares, resulting in a minimum investment of UGX 100,000 per shareholder. Kenyan investors will need to open a Securities Central Depository (SCD) account at the Uganda Securities Exchange (USE) to apply for the IPO, requiring a valid identification national ID or passport.
As part of the IPO, all East African applicants will receive 5 bonus shares for every 100 shares they are allocated. The IPO will close on November 22nd, 2021, at 4pm EAT. The listing of MTN Uganda on the Uganda Securities Exchange is expected to contribute to the deepening of the Ugandan and East African capital markets, enhancing public access to the growing stock market.
Speaking about the IPO, MTN Uganda Chief Executive Officer Wim Vanhelleputte stated that the decision to float shares on the stock market is part of the company's localization agenda, aimed at aligning its priorities with the development agendas of its operating markets, particularly in Africa, as enshrined in the MTN Ambition 2025 strategy.
“The decision to list MTN on the Uganda Securities Exchange is in line with our localization agenda aimed at prioritizing local investors with the goal of giving Ugandans and indeed East Africans the opportunity to own part of the company,” said Vanhelleputte, adding that Uganda is the fourth MTN operating market to be listed in Africa.
“During MTN’s 23 years in Uganda, we have grown tremendously, thanks to the enabling environment availed by the Government of Uganda as well as the unwavering support and trust of the people of Uganda and East Africa as a whole. We look forward to welcoming Ugandan and indeed East African retail investors as part-owners of a company that we have collectively built and that we’ll continue to grow together,” Vanhelleputte said.
