MTN Uganda opened its initial Public Offer that will run until 22nd November 2021 4pm. The MTN Uganda Chief Executive Officer, WIM VANHELLEPUTTE sheds more light on the MTN IPO, responding to some of the pertinent questions from the prospective retail investors.
What exactly is MTN offering to the public in the IPO?
Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices and MTN Mobile Money. The MTN Mobile Money services are conducted through our subsidiary MTN Mobile money limited Uganda that is 100% owned by MTN Uganda.
MTN has a presence in all the 134 districts of Uganda. Our services are delivered through a network of 119,077 Mobile Money agents, 200 service stores and 13 main distributors. At the end of September 2021, MTN Uganda had 15 million customers, over 8.6 million MoMo users and 4.7 million active data users.
For clarification, does the listing include your mobile money business as well?
The mobile money business is 100% subsidiary of MTN Uganda thus it is included in the listing.
What channels are available for the MTN IPO subscription
The channels available for IPO subscription, include; 1) the mIPO portal, on the myMTN app or USSD, or 2) online using the USE’s “Easy Portal” web-page. In the event an applicant does not have access to the Easy Portal web-page or the m-IPO platform, they can engage any of our five Authorised selling agents to assist with the application. 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 digitising the capital markets for Africa.
What is your allotment priority for the shares?
The Prospectus breaks down the allocation policy for 4 categories of investors, namely; Ugandan Retail Investors, Ugandan Professional Investors, East African Community (EAC) retail investors East African Community (EAC) professional investors and foreign investors. All these categories of investors are free to participate in the offer.
The allocation policy reflects our mindfulness of the role that Ugandans have played in our growth and look forward to starting this new journey together.
How much will MTN raise through this IPO?
This IPO is a Secondary Offer, in which the selling shareholder, MTN International (Mauritius) Ltd, is offering over 4.4 billion shares at an offer price of UGX 200 per offer share, as disclosed in the Prospectus.
The funds raised through the offer will accrue to the selling shareholder, net of related expensed. It’s important to note that MTN group has commitment to invest US$300m (approximately UGX 1 trillion) in network expansion in the next 3 years so as to deliver quality services to all.