African markets

Treat yourself as MTN Uganda goes public

About 21,394 people in Uganda became shareholders of MTN Uganda (USE: MTNU) following the conclusion of the company’s initial public offer (IPO).

MTN Uganda was listed on the Uganda Securities Exchange (USE) yesterday after raising Shs 535.9 billion (or $ 151 million) when it went public. This represents 60% of its target amount after the launch of its IPO in October, with a price of 4.5 billion shares on sale at Shs200 a piece.

Speaking during the listing of MTN on USE, Mr. Charles Mbire, President of MTN Uganda, described the development as an important milestone.

“[This] clearly shows the confidence Ugandans and other investors have in the company, its brand and its strategic intention, ”he said of more than 21,000 people moving from subscriber to shareholder status .

Stanbic Bank Uganda, MTN’s transaction adviser during the IPO process, revealed that Shs535.9b was collected from local retail Ugandans.

Ms Anne Juuko, chief executive of the bank, said 84 percent of the shares were allocated to Ugandan investors, nine percent to East African investors and four percent to international investors. The IPO has left MTN Uganda Managing Director Wim Vanhelleputte in a festive mood.

“We are particularly proud of our digital m-IPO collaboration with USE, a first in Africa,” he said, adding: “Over 93% of requests were made through the m-IPO platform. , with the majority of these investors being new market participants. “

Listing reduces MTN Group’s ownership in MTN Uganda from 96 percent to 83.05 percent. This is in line with the MTN Group’s strategic priority of creating shared value, in part by ensuring extended ownership in all operating subsidiaries.

In a statement, MTN Group President and CEO Mr. Ralph Mupita said the listing aligns with the Uganda Communications Commission new licensing requirement for Ugandan extended ownership.

“We are very encouraged to have helped facilitate the widest possible shareholder base in Uganda, with regional participation, and in doing so, to further develop the equity capital markets in this country,” he said. he declares.

USE Managing Director Paul Biwso said the number of people who opened the Central Securities Depository (SCD) account during MTN’s IPO was 74,000, in addition to the 38 000 that were already there.

He added that 19 percent of Ugandans who have SCD accounts participated in MTN’s IPO and helped to significantly increase USE’s market capitalization.

ICT minister Dr Chris Baryomunsi said the list “is a resounding validation of broadband, economic development and digitization”.

He, however, asked MTN and other telecommunications companies to review the voice call data, noting that the quality of service and the cost of the data had been criticized.

UCC Executive Director Ms. Irene Kaggwa Sewankambo said the telecommunications sector is one of the fastest growing sectors in the Ugandan economy.

About MTN

MTN Uganda is one of the leading telecommunications companies in Uganda and is present in all 135 districts of the country. It has 119,077 Mobile Money or MoMo agents, 200 service stores and 13 main distributors. At the end of June, it had 14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users.