CMA green lights MTN Uganda’s proposed IPO to Kenyan investors

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MTN UG
PHOTO/COURTESY

The Capital Markets Authority (CMA) has sanctioned MTN Uganda’s initial Public Offering (IPO) to be marketed in Kenya.

The marketing is spearheaded by SBG Securities, and Dyer and Blair, both of whom are licensed market intermediaries in Kenya, working in collaboration with their respective affiliates in Uganda.

The MTN Uganda IPO offers for sale 4.4 billion ordinary shares, accounting for a 20 percent stake of the company, at a price of UGX 200.00 per share. Each prospective shareholder must apply for at least 500 shares, which, if fully allocated, results in a minimum investment of UGX 100,000 per shareholder.

Kenyan investors will require a valid identification national ID or passport to open a Securities Central Depository (SCD) account at the Uganda Securities Exchange (USE) to apply for the MTN Uganda IPO. 

All East Africans who apply for shares will receive 5 bonus shares for every 100 shares they are allocated. The MTN Uganda IPO will close on Monday 22nd November 2021 at 4 pm EAT.

As the first telecommunications company to list on the Uganda Securities Exchange, MTN’s offer will contribute towards deepening the Ugandan and East African capital markets by enhancing public access to the growing stock market.

Speaking to analysts and the media about the offer, MTN Uganda Chief Executive Officer Wim Vanhelleputte said that the decision to float shares on the stock market, is part of MTN’s localization agenda aimed at aligning its company’s priorities more closely with the development agendas of its operating markets, in particular and the African continent, as enshrined in the MTN Ambition 2025 strategy.

“The decision to list MTN on the Uganda Securities Exchange is in line with our localization agenda aimed at prioritizing local investors with the goal of giving Ugandans and indeed East Africans the opportunity to own part of the company,” said Vanhelleputte, adding that Uganda is the fourth MTN operating market to get listed in Africa.

“During MTN’s 23 years in Uganda, we have grown tremendously, thanks to the enabling environment availed by the Government of Uganda as well as the unwavering support and trust of the people of Uganda and East Africa as a whole.”

ALSO READ: MTN Uganda to float 20pc of its shares on USE

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