MTN Uganda given nod by CMA Kenya to market IPO to Kenyan investors
Kenya’s Capital Markets Authority (CMAK) has provided its ‘no objection’ for The MTN Uganda Initial Public Offering (IPO) to be marketed in Kenya, allowing the marketing of the shares to both professional investors and retail Investors following the opening of the offer in Uganda on 11th October 2021.
The marketing in Kenya is spearheaded by SBG Securities, and Dyer and Blair, both of whom are licensed market intermediaries in Kenya, working in collaboration with their respective affiliates in Uganda.
The MTN Uganda IPO offers for sale 4.4 billion ordinary shares, accounting for a 20 percent stake of the company, at a price of Shs 200 per share. Each prospective shareholder must apply for at least 500 shares, which, if fully allocated, results in a minimum investment of Shs 100,000 per shareholder.
Kenyan investors will require a valid identification national ID or passport to open a Securities Central Depository (SCD) account at the Uganda Securities Exchange (USE) to apply for the MTN Uganda IPO.
All East Africans who apply for shares, will receive 5 bonus shares for every 100 shares they are allocated. The MTN Uganda IPO will close on Monday 22nd November 2021 at 4pm.
Speaking to analysts and the media about the offer, MTN Uganda chief executive officer, Wim Vanhelleputte said that the decision to float shares on the stock market, is part of MTN’s localization agenda aimed at aligning its company’s priorities more closely with the development agendas of its operating markets, in particular and the African continent, as enshrined in the MTN Ambition 2025 strategy.
"The decision to list MTN on the Uganda Securities Exchange is in line with our localisation agenda aimed at prioritising local investors with the goal of giving Ugandans and indeed East Africans the opportunity to own part of the company," said Vanhelleputte.
"During MTN’s 23 years in Uganda, we have grown tremendously, thanks to the enabling environment availed by the Government of Uganda as well as the unwavering support and trust of the people of Uganda and East Africa as a whole. We look forward to welcoming Ugandan and indeed East African retail investors as part-owners of a company that we have collectively built and that we’ll continue to grow together."
