According to Keith Kalyegira, Chief Executive Officer of the Capital Markets Authority, the initial public offering (IPO) of telecommunications company MTN Uganda is expected to raise approximately $1.2 billion.
MTN Uganda has previously announced that it had received approval to float 20% of its stock.
MTN Uganda intends to launch an initial public offering (IPO) and list on the Uganda Securities Exchange (USE).
This comes after the Uganda Securities Exchange and the Capital Markets Authority gave their approval for MTN Group to sell 20% of its stake in MTN Uganda to the public.
MTN Uganda is owned by the MTN Group, which controls 96 percent of the company.
The listing supports the Group’s strategic aim of creating shared value, which includes guaranteeing broad-based ownership in its operating companies.
It also complies with the terms of MTN Uganda’s NTO license, which stipulates that the company must be listed by the end of June 2022.
MTN Uganda’s Chairman of the Board of Directors, Charles Mbire, said, “The intention to float statement is a big step towards delivering on our objective to list on the USE.” “This is a reaffirmation of our long-term commitment to expanding investment choices for Ugandans, and we look forward to working with the CMA and USE to move the IPO and listing forward.”
“Over the last 23 years, the people of Uganda have accepted MTN as their own and given us the authority to operate throughout this country,” MTN Group Vice President for Southern and East Africa Yolanda Cuba said. We are returning the favor by encouraging Ugandans to join in the prosperity that we have achieved together.”
Also read: Uganda tells MTN to list 20% of its shares on local Exchange
MTN Uganda began the implementation of our infrastructure and services in 1998, with a license in hand.
MTN Uganda has made expanding rural service a priority over the years. It currently covers 97 percent of the country’s population and has over 6,000 kilometers of fiber connectivity to deliver voice and data bandwidth to more than 15 million subscribers both within and beyond the country.
MTN’s commitment to democratizing mobile telecommunications is evidenced by the increase in mobile penetration in Uganda from 0.27 percent in 1998 to 67 percent in March 2021.
MTN Mobile Money (MoMo) has changed the financial scene as well. Formal financial inclusion in Uganda has nearly doubled since 2009, when MoMo was implemented, from 28% to 58 percent in 2018.
MTN Uganda employs over 1,000 people directly and another 150,000 indirectly. More than 500,000 people are employed by MTN thanks to its extensive distribution network.
