MTN Uganda has announced plans to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE).
This follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20 percent of its shareholding in MTN Uganda to the public. MTN Group currently owns 96 percent of MTN Uganda.
The listing is in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda’s NTO licence, which requires its listing by the end of June 2022.
“The intention to float announcement is a major step towards delivering on our plan to list on the USE. It is a reaffirmation of our long-term commitment to expand investment opportunities for Ugandans and we look forward to continuing our engagement with the CMA and USE to take forward the IPO and the listing,” said Charles Mbire, Chairperson of the Board of Directors, MTN Uganda.
MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone.
“Over the last 23 years, the people of Uganda have embraced MTN as their own and given us the legitimacy to operate throughout this country. We are reciprocating by inviting Ugandans to share in the ownership of the success that we have built together,” Cuba said.
In 1998, licence in hand, MTN Uganda commenced the rollout of its infrastructure and services. The company provided affordable access to the people of Uganda through a widespread voice and data network, investing UGX3.5 trillion in infrastructure development across the 134 districts of Uganda, both rural and urban.
The growth in mobile penetration in Uganda from 0.27 percent in 1998 to 67 percent as of March 2021 is proof of MTN’s contribution to democratizing mobile telephony. The fruits of this are evident in the widespread adoption of key technology platforms powered by high-speed connectivity, which enable the creation, distribution, and consumption of a wide range of digital services.
MTN Mobile Money (MoMo) has also revolutionized Uganda’s financial landscape. Formal financial inclusion has nearly doubled from 28 percent in 2009 when MoMo was introduced in Uganda to 58 percent as of 2018.
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