MTN Uganda's Sh27.6 billion initial public offering (IPO) opened on October 12, 2021, with South African parent company MTN Group offering 4.47 billion shares at Sh6.2 per unit. The telecoms firm is incentivizing participation by providing free shares of 5-10 units for every 100 allocated, effectively granting a 5-10% discount on purchase prices.
The offering prioritizes Ugandan investors but allows Kenyan and East African Community citizens to apply. Institutional investors must meet minimum thresholds—Sh109.3 million for five free shares or Sh5.5 billion for 10—to qualify for incentives. Retail investors with applications exceeding Sh156,000 will receive allocated shares plus corresponding free units.
A 2019 Uganda Communications Commission (UCC) directive required foreign telcos to reserve 20% of shares for local and East African ownership by 2021. MTN Uganda's current ownership structure includes 96.01% by MTN Group and 3.98% by businessman Charles Mbire.
The IPO could become Uganda's largest, potentially boosting its small stock market with 40,000 investors trading 17 stocks. It follows Safaricom's 2008 Nairobi Securities Exchange listing as the region's second publicly traded telecom.
The prospectus states the offer may be suspended if 25% of shares (1.12 billion units) are not subscribed, requiring consultation with Uganda's Capital Markets Authority and Uganda Stock Exchange.
