MTN Uganda launched its Initial Public Offering (IPO) on 11/10/2021, with MTN South Africa, the majority shareholder, proposing to sell 20% of its stake at a price of UGX 200 per share. The offering will remain open for six weeks until 22/11/2021.
The company had previously outlined plans to go public by June 2022, aiming to meet regulatory requirements that mandate telco operators to transition to public limited companies by the end of 2022. This follows discussions with the Uganda Communications Commission.
Download Complete MTN IPO Prospectus ¶
MTN Uganda first signaled its intent to list on the Uganda Securities Exchange (USE) in 2018, with renewed interest reported in March 2019. In March 2020, the company agreed to pay US$100 million for a 14-year operating license and commit to listing 20% of its shares on the USE by Q2 2022.
The IPO is projected to generate approximately US$1.2 billion, according to CMA CEO Keith Kalyegira. Shares will be restricted to East African Community nationals, including Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda.
As of 30 June 2019, MTN Uganda served 11.9 million subscribers, holding 56% of the market. By December 2020, this grew to 13 million customers, with 16 million reported in March 2021, representing 57% of Uganda's 28.3 million mobile subscribers.
Part of the MTN Group, the company operates in 22 African and Middle Eastern countries, connecting 232 million people. It introduced mobile money services in 2009, capturing 80% of the market by 2015.
MTN Uganda recorded $407 million in pre-tax revenues in 2019, remaining Uganda's largest taxpayer over the past decade.
The board includes Ugandan chairman Charles Mbiire, along with directors Ms. Karabo Nondumo, Ms. Yolanda Cuba, Mr. Sugentharen Perumal, Mr. Wim Vanhelleputte, and Mr. Andrew Bugembeand. Vanhelleputte also serves as CEO.
