MTN Uganda Limited has launched its initial public offering (IPO), marking a key milestone in its strategy to expand ownership among Ugandan citizens. The offering, approved by the Capital Markets Authority of Uganda (CMA) and Uganda Securities Exchange (USE), involves the sale of 4.4 billion shares at UGX200 per unit, representing 20% of the company's ordinary shares.
The IPO, open from 11 October 2021 to 22 November 2021, follows MTN Group's decision to divest 4% of its 96% stake in MTN Uganda. The process will enable Ugandan retail investors to participate through a digitized m-IPO portal, accessible via USSD and the MyMTN App, alongside traditional banking channels at Stanbic, Absa, and Standard Chartered Bank branches.
"This initiative positions Uganda as a leader in Africa's capital market digitization," said MTN Uganda CEO Wim Vanhelleputte. The offering includes a share incentive program, granting retail investors 10 additional shares for every 100 applied for, aiming to maximize participation. Upon completion, MTN Uganda will list its full share capital on the USE's Main Investment Market Segment by June 2022, fulfilling licensing requirements.
Yolanda Cuba, MTN Group's Southern and East Africa VP, emphasized the IPO's role in deepening Uganda's capital markets while aligning with the group's Ambition 2025 goals. The company, established in 1998, reported 14.9 million subscribers and 8.6 million MobileMoney users in H1 2021, underscoring its market dominance.
