MTN Uganda Limited has opened its initial public offer (IPO) of 20% of its ordinary shares, following approvals by the Capital Markets Authority of Uganda (CMA) and the Uganda Securities Exchange (USE).
The secondary sale of 4.4 billion shares by the MTN Group will be at an offer price of UGX200 per share.
The offer opens today, Monday 11 October 2021, and will close on Monday 22 November 2021. MTN Group currently holds 96% of MTN Uganda.
“With the opening of the IPO we are one step closer to our goal of broad ownership of our business across the Ugandan population,” said MTN Uganda Chief Executive Officer Wim Vanhelleputte. “Our m-IPO initiative is the country’s first paper-free IPO platform aimed at retail investors, in partnership with the USE, and will help position Uganda at the forefront of digitising the capital markets for Africa,” he added.
Yolanda Cuba, MTN Group Vice President for Southern and East Africa, said the IPO would give Ugandans an opportunity to participate in the ownership of their country’s leading mobile operator and, in doing so, help deepen
Uganda’s capital markets.
“Today’s IPO is very clearly aligned with our Ambition 2025 strategic intent of leading digital solutions for Africa’s progress,” she said.
The offer aims to facilitate the broadest possible shareholder base in Uganda, with Ugandan Retail Investors making Applications for Offer Shares of an aggregate minimum value of UGX 5 million to be allocated the full number of Offer Shares for that minimum value applied for.
A unique digital channel will be available to retail investors for IPO subscription: the m-IPO portal, accessible via USSD and via the MyMTN App. Traditional payment channels will also be available across Uganda at Stanbic Bank, Absa Bank and Standard Chartered Bank branches and authorized selling agents.
The IPO includes a broad share incentive scheme and Ugandan retail investors in particular using the m-IPO channel are eligible to receive 10 additional incentive shares for every 100 shares applied for and allocated in the IPO.
Following the successful completion of the offer, the company will list its entire ordinary share capital on the Main Investment Market Segment of the USE. This will meet the requirements of MTN Uganda’s licence, which require its listing
by end-June 2022.
The dates noted in this announcement may be subject to change.
OFFER OPEN FACT SHEET
When will the offer start and end? The Time-Table
• Offer opens at 10:00 am 11th October 2021
• Offer closes at 4:00 pm 22nd November 2021
• Announcement of share allocation at 4:00 pm 3rd December 2021
• Listing of MTN Shares on the USE and start of trading at 12:00 pm 6th December 2021
What is on Offer?
MTN is offering 4,477,808,848 ordinary shares to the public
• The Price of 1 share is UGX 200
• Any Ugandan can apply to buy shares for as low as UGX 100,000
• Minimum number of shares per application is 500
• Applications for MTN shares are in batches of 500 each, and there are no limits on how many MTN shares you apply for
Are there any special incentives?
Special Incentive for all Ugandan individuals buying MTN Shares
• 5 bonus shares for every 100 shares applied for using traditional application channels
• 10 bonus shares for every 100 shares applied for using the m-IPO via USSD or the MyMTN app
How to apply for shares?
First of its kind m-IPO where Ugandans can apply for their shares through their MTN mobile phones from the comfort of their homes
• Dial USSD code *165*65# to open SCD account and apply for MTN shares
• Visit MyMTN app to open SCD account and apply for MTN shares
• All USSD and My MTN app applications are free of any charge
• Apply for MTN shares through USE Easy-Portal at https://scd.use.or.ug/
• Apply for MTN shares through paper application forms by contacting your licensed stockbroker
• Detailed prospectus and terms and conditions are available at www.mtn.co.ug/investors
What is the allotment process?
Ugandan individual investors will be considered first in case the number of applications is more that the number of shares offered
• Ugandan individuals will receive guaranteed shares up to UGX 5 million with the full number of bonus shares that they are entitled to
• If an application is not successful or in case of partial allotment, all payments will be refunded though the same channel, free of charge.
