By Simon Abaho
MTN Uganda has announced the formal opening of its initial public offer (IPO) of 20% of its ordinary shares, following approvals by the Capital Markets Authority of Uganda (CMA) and the Uganda Securities Exchange (USE).
The secondary sale of 4.4 billion shares by the MTN Group will be at an offer price of Shs 200 per share.
The offer opened on Monday 11 October 2021, and will close on Monday 22 November 2021.
MTN Group currently holds 96% of MTN Uganda.
“With the opening of the IPO we are one step closer to our goal of broad ownership of our business across the Ugandan population,” said MTN Uganda chief executive officer Wim Vanhelleputte.
“Our m-IPO initiative is the country’s first paper-free IPO platform aimed at retail investors, in partnership with the USE, and will help position Uganda at the forefront of digitizing the capital markets for Africa,” he added.
Yolanda Cuba, MTN Group Vice President for Southern and East Africa, said the IPO would give Ugandans an
opportunity to participate in the ownership of their country’s leading mobile operator and, in doing so, help
deepen Uganda’s capital markets.
“Today’s IPO is very clearly aligned with our Ambition 2025 strategic intent of leading digital solutions for
Africa’s progress,” she said.
The firm said a unique digital channel will be available to retail investors for IPO subscription: the m-IPO portal, accessible via USSD and via the MyMTN App.
Traditional payment channels will also be available across Uganda at Stanbic Bank, Absa Bank and Standard Chartered Bank branches and authorized selling agents.
Following the completion of the offer, the company will list its entire ordinary share capital on USE.
MTN Uganda started operating in 1998. In the first half of 2021, it had 14.9 million subscribers, 8.6 million
MobileMoney users and 4.7 million active data users.