This archive report was first published on 4 November 2021.
Kenyan investors are set to benefit from a bonus share offer as MTN Uganda launches its Initial Public Offer (IPO) worth KSh 250 million, the second-largest in East Africa.
MTN Uganda, a subsidiary of Johannesburg-based carrier MTN International, is offering 4.4 billion shares worth KSh 27.9 billion to Kenyans at the rate of KSh 6.25 per share.
According to Anne Juuko, Stanbic Bank Uganda, the IPO began on October 11, 2021, and will run until November 22, 2021, with allotment of shares on December 3, 2021, and listing at the Uganda Securities Exchange (USE) on December 6, 2021.
Kenyan investors will receive a bonus of 5 shares for every 100 shares bought, while Ugandans will get 10 shares for every 100 shares purchased.
MTN Uganda CEO Wim Vanhelleputte said the company is inviting investors from Kenya and East Africa to widen its shareholder base and expand its network.
"We are inviting investors from Kenya and East Africa so as to widen our shareholding, have more appeal, be stronger and give back to the community where we operate," Vanhelleputte said in a virtual press conference in Moroto, Eastern Uganda.
MTN Uganda is required to list at the Uganda Stock Exchange (USE), widen its shareholder base, and expand its network as part of its licensing conditions, which must be fulfilled by June 2022.
"We have to fulfill these licensing conditions by June 2022 and give back to the community where we operate by having local ownership," Vanhelleputte said.
