MTN Uganda will sell a fifth of its stake to Kenyan and other East African investors when it goes public (IPO) on the Kampala Stock Exchange.
Telekom, a South African subsidiary of the MTN Group, shared on Tuesday that it received regulatory approvals to list 20 percent of its shareholdings.
The company said Tuesday that it would publish details of the offering in its prospectus published October 11th.
Keith Kalyegira, chief executive of the Ugandan Capital Markets Authority (CMA), said the IPO is expected to raise approximately $ 1.2 billion.
“Intended to make the announcement Going public is an important step in implementing our plan to go public on the USE, “Charles Mbire, chairman of MTN Uganda, told reporters.
The eagerly anticipated sale of shares in the füh The Ugandan telecommunications company in Uganda will remain limited to citizens of the trade bloc of the East African Community, the Ugandan regulator said earlier.
In addition to Kenya and Uganda, the other members of the EAC are Tanzania, Rwanda, Burundi and South Sudan.
The IPO is intended to increase the number of private investors on the Uganda Securities Exchange from around 40,000 to 200,000.
With the listing, MTN Uganda will become the second listed telecommunications provider in the EAC after Safaricom’s IPO on the Nairobi Securities Exchange in 2008.
“This will potentially be the largest IPO in the Ugandan market and will be primarily through a digital paperless / green platform This is the first of its kind in East Africa,” MTN Uganda said in a statement .
“The offer and listing of MTN Uganda correspond to the localization of the MTN Group plans to have local ownership in the markets in Uganda that MTN operates, “the company said.
The Ugandan government has made the listing of telecommunications companies on the local stock exchange as one of their license renewal conditions in order to preserve local ownership of large companies with a few major shareholders.
MTN Group Ltd from South Africa owns more than 90 percent of the c company shares, while a Ugandan businessman holds less than five percent of the shares.
The operating license of MTN Uganda with 15 million subscribers was last February Year extended by 12 years after paying $ 100 million to the local listing prerequisite for nodding approval.
“We are very pleased that MTN is honoring this commitment,” said Irene Kaggwa-Sewankambo, Executive Director of the Uganda Communications Commission.
MTN Uganda was granted two years from July 1, 2020 to list 20% of its equity on the Uganda Stock Exchange.
“This IPO gives Ugandans the opportunity to own part of the company.” said USE boss Paul Bwiso on Tuesday.
MTN Uganda began operating in the country in 1998.
Although Uganda’s telecommunications and data market is relatively small, it is seen as potentially lucrative Considered that many of the country’s 42 million people are young.
Mobile penetration in Uganda rose from 0.27 per percent in 1998 to 67 percent in March 2021, underscoring the sector’s rapid growth .