Today 11/10/2021 at mid-day, MTN Uganda has officially opened the Initial Public Offer (IPO) to the public. The MTN Uganda majority shareholder MTN South Africa is offering 20% of its shares at a value of only UGX 200 per share. This offer will be maintained for six weeks until 22/11/2021 close of markets time
Last week, MTN had projected the intention to go public by June 2022 in an IPO that was seen to give 20% stake to the public. This came after long negotiations with the Uganda Communications Commission in a fresh compliance regulation of making the telco giant a public limited company before the end of 2022.
In 2018 The EastAfrican newspaper reported that MTN Uganda planned to list the shares of stock of the company on the Uganda Securities Exchange (USE). That willingness to list, on the part of MTN Uganda, was again reported in March 2019.
In March 2020 MTN Uganda agreed to pay US$100 million for a 14-year operating license and to list 20 percent shareholding on the USE, no later than the second quarter of 2022. The shares sold on the USE will be restricted to nationals of the countries of the East African Community; namely Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. The IPO is expected to raise about US$1.2 billion, according to Keith Kalyegira, the CEO of the Capital Markets Authority of Uganda (CMA).
About MTN Uganda
MTN Uganda is the largest telecom company in Uganda, with 11.9 million subscribers, accounting for 56 percent market share, as of 30 June 2019. By 31 December 2020, its customer base had increased to 13 million customers. In March 2021, the Uganda Communications Commission estimated the number of MTN customers in Uganda at 16 million, out of 28.3 million mobile network subscribers, thereby attaining a 57 percent market share.
MTN Uganda is a subsidiary of MTN Group, a multinational telecommunications group connecting approximately 232 million people in 22 countries across Africa and the Middle East. In 2009, MTN Uganda introduced its mobile telephone-based banking product known as Mobile Money. As of March 2015, MTN controlled 80 percent of the mobile money market in the country
Summary on MTN Uganda Revenues
In 2019 MTN recorded revenues of $407 million pretax and has in the last decade been Uganda’s biggest taxpayer.
MTN Uganda Leadership
The Chairman Board of Directors is a Ugandan National Mr. Charles Mbiire one of the wealthiest men in Uganda while other members on the board of directors include Ms. Karabo Nondumo, Ms. Yolanda Cuba, Mr. Sugentharen Perumal, Mr. Wim Vanhelleputte, and Mr. Andrew Bugembeand. The CEO of the telco is Mr. Wim Vanhelleputte