MTN Uganda has launched a Sh27.6 billion initial public offering (IPO) to attract Kenyan investors, emphasizing the potential of mobile money transfer and internet services in East Africa.
The telco projects mobile money merchant numbers could rise from 45,000 to 500,000, while fixed internet users may grow from 3,000 to 3 million. East African countries had until November 22 to approve the stake sale, though only Tanzania and Kenya have granted 'no objection' status, according to the IPO's broker.
SBG Securities (Uganda) CEO Joram Ongura stated the regulator aims to secure approvals swiftly. The IPO follows MTN Uganda's renewed license, which required public shareholding of 20% with Ugandan priority. MTN Group, holding 96% of the company, is offering 4.5 billion shares at Sh6.30 each, with bonus shares for regional investors.
Kenyans purchasing shares through the m-IPO platform will receive 10% bonus shares, while traditional buyers get 5%. Minimum investment is Sh3,150 (Ush100,000) for 500 shares. MTN Uganda CEO Wim Vanhelleputte called the offering affordable, comparing it to land prices, and highlighted Uganda's 5-6% GDP growth from oil discoveries.
Vanhelleputte noted mobile data adoption could surge 50-60% with smartphone growth. He cited Safaricom's regional expansion as a model, aiming to replicate Lipa na M-Pesa's ubiquity in Uganda through mobile money services.
