Kenya’s Capital Markets Authority (CMA) has provided has given the greenlight for the MTN Uganda Initial Public Offering (IPO) to be marketed in Kenya, opening the issue to both Kenyan retail and institutional investors.
The MTN Uganda IPO, which opened in Uganda on 11th October 2021, is being spearheaded in Kenya by SBG Securities and Dyer and Blair, working in collaboration with their respective affiliates in Uganda. SBG Securities Uganda Limited is the transaction advisor and lead sponsoring broker for the MTN Uganda IPO and will be collaborating with SBG Securities Limited (Kenya).
The MTN Uganda IPO offers for sale 4.4 billion ordinary shares, accounting for a 20% stake of the company, at a price of UGX 200.00 (KES6.25) 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 (KES3,125) 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 closes on Monday 22nd November 2021 at 4pm 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’s capital markets by enhancing public access to the growing stock market.
It will rekindle IPO memories for Kenyan investors, who are undergoing a dryspell of initial share offering at the Nairobi Securities Exchange. Some of the past successful initial IPOs in Kenya include, Safaricom, Access Kenya, and Scangroup.
Speaking to analysts and the media about the offer, MTN Uganda Chief Executive Officer Wim Vanhelleputte said the decision to float shares on the stock market is part of MTN’s localization agenda aimed at aligning its priorities with the development agendas of its operating markets, in particular African.
“We are 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.”
MTN Uganda IPO prospectus has been approved by the Uganda Capital Markets Authority.