Home » Kenyans to access MTN Uganda shares after IPO launch

Kenyans to access MTN Uganda shares after IPO launch

October 11, 2021
Cynthia Kanyali

An MTN outlet in Uganda, Kampala/ NMG PHOTO

Interested Kenyans will be able to buy into MTN Uganda shares after the firm launched Uganda’s biggest Initial Public Offer (IPO) on October 11, 2021.

MTN Uganda reached an agreement with Uganda Communications Commission to pay $100 million for a 12-year license in Uganda valid from July 1, 2020.

An initial public offering was one of the conditions for the renewal of the license.

The price for the sale of a 20 percent stake was set at USh200 (Sh6.28) per share.

The IPO is open to the general public including non-Ugandans in jurisdictions that are not subject to selling restrictions. It will close on November 22 at 4 pm EAT and shares will start trading on December 6.

All East African Retail Investors who apply for shares will get 5 bonus shares for every 100 shares they are allocated.

Uganda’s Capital Markets Authority expects to reap Non Tax Revenue of Sh1.15 billion from the listing of telecom giant MTN Uganda on the Uganda Securities Exchange.

This according to the Chief Executive Officer of the authority Keith Kalyegira while appearing before the Finance Committee of Parliament.

The meeting chaired by the vice-chairperson of the committee Jane Pachuto was called to discuss the performance of the authority as the committee prepares to receive the policy statements of Ministries, Departments and Agencies.

MTN Uganda is expected to list at least 20 percent of its shares. MTN Uganda reported a 9.1 percent increase in net profit to USH442.6 billion for the first six months of 2020.

The performance was driven by the strong performance of mobile money, data and digital income. Overall, the company’s revenues grew by 7.6 percent to USh900 billion in the period while data incomes jumped from USH128 billion to USh167 billion representing a 30 percent growth.

Here’s how to Apply

Visit https://www.mtn.co.ug/investors
Click on Apply then follow the instructions.
Ensure that you register as an East African individual. The offer terms and conditions plus other information are set out in the Prospectus.

What you need to apply

You need a copy of your passport to complete the registration process and open your Securities Central Depository (SCD) account.
Kenyan nationals may use a copy of their national ID in the registration process.
Applicants can also directly engage SBG Securities or Dyer & Blair the licensed stockbrokers for assistance.