African markets

MTN opens largest Ugandan IPO

MTN Uganda Limited is pleased to announce the opening of its Initial Public Offering (IPO) of 20% of its common stock, following approvals from 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 done at an offer price of UGX 200 per share. The offer opens today, Monday October 11, 2021, and will close on Monday November 22, 2021. MTN Group currently owns 96% of MTN Uganda.

“With the opening of the IPO, we are moving closer to our goal of broad ownership of our company across the Ugandan population,” said Wim Vanhelleputte, CEO of MTN Uganda. “Our m-IPO initiative is the country’s first paperless IPO platform for retail investors, in partnership with USE, and will help position Uganda at the forefront of digitization capital markets for Africa, ”he added.

Yolanda Cuba, MTN Group Vice President for Southern and Eastern Africa, said the IPO would give Ugandans the opportunity to participate in the ownership of their country’s leading mobile operator and in so doing, help to deepen Ugandan capital markets.

“Today’s IPO is very clearly aligned with our Ambition 2025 strategic intention to deliver digital solutions for Africa’s progress,” she said.

The offering aims to facilitate the widest possible shareholder base in Uganda, with Ugandan retail investors applying for offering shares with a total minimum value of UGX 5 million to be awarded the number total offer shares for this minimum requested value. A single digital channel will be available to retail investors for IPO subscription: the m-IPO portal, accessible via USSD and via the MyMTN application. Traditional payment channels will also be available throughout Uganda at Stanbic Bank, Absa Bank and Standard Chartered Bank branches and authorized sales agents.

The IPO includes an extensive equity incentive program and Ugandan retail investors, especially using the m-IPO channel, are eligible to receive 10 additional incentive shares for every 100 shares requested and awarded in the IPO. in connection with the initial public offering.

Upon successful completion of the offer, the company will register all of its ordinary share capital in the main segment of the USE investment market. This will meet MTN Uganda’s license requirements, which require its registration by the end of June 2022.

MTN Uganda started operating in 1998. In the first half of 2021, it had 14.9 million subscribers, 8.6 million mobile money users and 4.7 million active data users.

The dates indicated in this announcement may be subject to change.

About MTN Uganda

MTN Uganda is a leading telecommunications company in Uganda whose main objective is to operate as a national operator of a telecommunications network in accordance with the NTO license granted by UCC. Our offerings include network services, digital and financial technology services, interconnection and roaming, mobile device sales and MTN Mobile Money (which is carried out through the subsidiary MTN Mobile Money Uganda Limited). MTN is present in all 134 districts of Uganda. Our services are provided through a network of 119,077 Mobile Money agents, 200 service stores and 13 major distributors. At the end of June 2021, MTN Uganda had 14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users.