MTN, stockbrokers make last call on IPO  

Business

MTN alongside its lead stockbrokers made a final call to the members of the public who wish to apply for the company’s shares to do so ahead of the closure of its Initial Public Offering that is only three days away.

This last call was made by the MTN Chief Executive Officer, Wim Vanhelleputte and the SBG Chief Executive Officer, Joram Ongura in a press conference held at the Kampala Serena Conference Center.

The MTN Initial Public Offer (IPO) was opened on 11th October 2021 and closes today, Monday 22nd November 2021.

The secondary sale of 4.5 billion shares by the MTN is at an offer price of Shs 200 per share with 500 shares being the minimum number of shares an individual can apply for, an implication that one can become an MTN shareholder for as low as Shs 100,000.

As the first ever paperless IPO, MTN subscribers are afforded the convenience of opening their SCD accounts as well as applying for shares using their mobile phones through the MyMTN app or by simply dialing *165*65# and following prompts. Traditional payment channels are also be available across Uganda at Stanbic Bank, Absa Bank and Standard Chartered Bank branches and authorised selling agents.

Individual investors who apply through the mIPO platform will receive 10 bonus shares for every 100 shares allocated to them while those who use the traditional application channels will get 5 bonus shares for every 100 shares allocated to them.

Wim Vanhelleputte said that within the period, over 60,000 individuals have opened Securities Central Depository (SCD) accounts.

"This is a great success because it has more than doubled the number of SCD account holders in a few weeks’ time," he said.

Vanhelleputte noted that upon the request from their customers, the daily limit that one can apply for shares has been increased to 20 million shillings up from 5million shillings.

"This implies that starting today, our existing SCD account holders can apply for shares of up to 20 million shillings per day," Vanhelleputte said.

During the six-week period of the MTN IPO, the company alongside its stock brokers held over 300 town halls and a series of media engagements across the country in a bid to sensitize masses about the offer as a way of giving everyone in Uganda an opportunity to become a part owner of the biggest company in the country.

The initiative to publicly list the company is in line with MTN Group’s localisation agenda and also in fulfilment of the requirements of MTN’s second national operator license issued by Uganda Communications Commission in 2020 in accordance with the national broadband policy of 2018.

In line with the above policy, MTN also committed to investing 3million USD in Uganda’s telecom sector over the next three years.

Upon successful completion of the offer period which ends today, MTN will allocate shares with priority given to Ugandans as it ushers the company onto the main investment market segment of the USE, fulfilling its license requirement of listing by June 2022.

 

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