MTN Uganda Limited announces that it will proceed today with the listing of its 22.4 billion ordinary shares on the Uganda Securities Exchange (USE), with trading commencing immediately.
The IPO, which floated 4.5 billion shares, on October 11 as part of a UCC license requirement, returned 2.9 billion shares indicating an under subscription but was, however, above the 25 percent threshold or approximately 1.1 billion shares, which is acceptable performance by Capital Markets Authority.
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The listing has received the requisite approvals from the Capital Markets Authority in Uganda and the USE. It follows the successful completion of the largest initial public offering in Uganda’s history, raising a record UGX 535 billion from applications for 2.9 billion shares (including incentive shares).
HIGHLIGHTS OF THE INITIAL PUBLIC OFFER OF MTN UGANDA LIMITED
| Offer Shares | 4,477, 808, 848 ordinary shares | |
| Number of Offer Shares allocated (Sale Shares and Incentive Shares) | 2 902 003 800 ordinary shares | |
| Total Offer Proceeds | UGX 535 939 900 000 | |
| Total number of Applicants for Offer Shares | 21 394 | |
| Total number of Ugandan Applicants | 20,894 | |
| % of Shares Allocated to Ugandan Investors | 87% | |
| % of Shares Allocated to East African Investors | 9% | |
| Total number Shares Allocated to Retail Investors | 10% | |
| Total number Shares Allocated to Professional Investors | 90% | |
| SCD Accounts opened on the m-IPO platform during the Offer Period | 65,000 | |
| % of Total Applications submitted on the m-IPO platform | 90% | |
| Impact on USE local market capitalization | Increase from UGX3.8trn to UGX8.2trn |
“We are delighted with the successful completion of the offer. It clearly shows the confidence that Ugandans and other investors have in the company, its brand and its strategic intent,” said MTN Uganda Chairman Mr. Charles Mbire.
“We commend all the regulators for their support in our work to become a USE-listed company and to comply in a timely manner with the listing provisions of the national telecommunications operators’ licence,” he added.
MTN Uganda CEO Wim Vanhelleputte was also in a celebratory mood: “Today marks the conclusion of a remarkable journey which has given over 20 000 Ugandans the opportunity to become owners of MTN Uganda.”
“We are particularly proud of our digital m-IPO collaboration with the USE, an African first. More than 93% of the applications were made via the m-IPO platform, with the majority of these investors new market participants,” he added.
The listing reduces the ownership of MTN Group in MTN Uganda from 96% to 83.05%. It is in line with MTN Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in all operating subsidiaries. This aligns with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans, with a compliance deadline of mid-2022.
“With this listing, MTN Uganda becomes the Ugandan stock with the largest market capitalisation on the USE,” said MTN Group President and CEO Ralph Mupita. “We are very encouraged to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country.”
