MTN Uganda Limited has announced the sale of up to 1,574,807,373 ordinary shares through the secondary market. This sale, spearheaded by SBG Securities Uganda Limited, acting as the lead sponsoring broker, is set to provide a significant opportunity for Ugandan, East African, and international investors to invest in one of Uganda’s leading telecommunications companies.
The offer comes in the wake of MTN Uganda’s previous listing on the Main Investment Market Segment of the Uganda Securities Exchange (USE) on December 6, 2021.
This listing, following the initial public offer (IPO) that commenced on October 11, 2021, and concluded on November 22, 2021, achieved the telco a 12.97% public float, allowing MTN Uganda to list on the USE under a waiver granted by the exchange.
The primary objective of the current offer is to further broaden Ugandan shareholding in the telecom company.
Offer Details
The sale period for the shares is set from May 27, 2024, at 10 a.m. to June 10, 2024, at 4 p.m. The shares will be available at an offer price of UGX 170 per share, with a minimum purchase requirement of 1,400 shares.
Additional shares must be bought in multiples of 420. This offer includes an incentive for participating investors, whereby for every 140 shares purchased, 30 additional shares will be provided at no extra cost.
The sale is structured to cater to both retail and professional investors, with a clear emphasis on encouraging local participation. Retail investors are defined as individuals who trade securities for personal accounts, while professional investors are corporate entities focused on investment activities.
However, professional investors will face a lock-in restriction, preventing them from selling their shares for six months following the transfer. This measure aims to maintain market stability and protect the interests of existing shareholders.
Participation requirements and application process
To participate, investors must have a securities central depository (SCD) account. Those without an SCD account can open one via the USE Easy-Portal or by contacting licensed stockbrokers listed on the USE website.
Applications for shares can be submitted electronically through the USE Easy-Portal or physically through licensed stockbrokers.
The allocation of shares will prioritize Ugandan and East African retail investors, followed by professional investors. In case of oversubscription, the offer will favor retail investors from Uganda and East Africa.
To ensure an orderly process, MTN Uganda has requested a temporary suspension of trading in its shares from May 27, 2024, to June 12, 2024. This suspension is approved by the USE and is intended to prevent market disruptions during the offer period. Normal trading will resume after the offer concludes.
