MTN Uganda launches the country’s biggest IPO

Business

MTN Uganda said yesterday it had set the price of its Initial Public Offering (IPO) for the sale of a 20% stake at 200 Ugandan shillings (R0.83) per share, as the East African nation’s biggest telecoms operator launched the country’s biggest IPO.

“The MTN IPO is officially open,” said MTN Uganda chief executive Wim Vanhelleputte at a news conference in Kampala, saying the IPO would close on November 22. Shares start trading on December 6.

The telecoms firm is offering 4.5 billion shares, Vanheleputte said, after the unit of South Africa’s MTN Group secured regulatory approval last week.

This would value the stake at 895.56 billion (R3.7billion) and MTN Uganda at $1.25 billion, said the company.

Anne Juuko, chief executive of Stanbic Bank Uganda, which owns the sponsoring brokerage SBG Securities Uganda Ltd, said Ugandans would have first priority, followed by investors in East Africa and then investors from outside the region.

MTN, which has 15 million subscribers, also offers mobile money financial services, which Vanhelleputte said was the firm’s biggest growth area as more people sought cashless transactions amid the Covid-19 pandemic.

Its main rival is a unit of India’s Bharti Airtel. It could build more subscribers after a smaller rival, Africell, said it was quitting the market.

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