MTN Uganda lists  its shares on the USE and commences trading today

MTN Uganda Limited announces that it will proceed today with the listing of its  22.4 billion ordinary shares on the Uganda Securities Exchange (USE), with trading commencing immediately.

The listing has received the requisite approvals from the Capital Markets Authority in Uganda and the USE. It follows the successful completion of the largest initial public offering in Uganda’s history, raising a record UGX535 billion from applications for 2.9 billion shares (including incentive shares).

“We are delighted with the successful completion of the offer. It clearly shows the confidence that Ugandans and other investors have in the company, its brand and its strategic intent,” said MTN Uganda Chairman Mr. Charles Mbire. 

“We commend all the regulators for their support in our work to become a USE-listed company and to comply in a timely manner with the listing provisions of the national telecommunications operators’ licence,” he added.

MTN Uganda CEO Wim Vanhelleputte was also in a celebratory mood: “Today marks the conclusion of a remarkable journey which has given over 20 000 Ugandans the opportunity to become owners of MTN Uganda.” 

“We are particularly proud of our digital m-IPO collaboration with the USE, an African first. More than 93% of the applications were made via the m-IPO platform, with the majority of these investors new market participants,” he added.

The listing reduces the ownership of MTN Group in MTN Uganda from 96% to 83.05%. It is in line with MTN Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in all operating subsidiaries. This aligns with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans, with a compliance deadline of mid-2022.

“With this listing, MTN Uganda becomes the Ugandan stock with the largest market

capitalisation on the USE,” said MTN Group President and CEO Ralph Mupita. “We are very encouraged to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country.” 

 

About the MTN Uganda

MTN Uganda is a leading telecoms company in Uganda with a primary objective of carrying on the business of a national operator of a telecommunications network pursuant to the NTO licence granted by the UCC. Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices and MTN Mobile Money (which is conducted through subsidiary MTN Mobile Money Uganda Limited). MTN has a presence in all 134 districts of Uganda. Our services are delivered through a network of 119,077 Mobile Money agents, 200 service stores and 13 main distributors. At end-June 2021, MTN Uganda had 14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users.

 

For more information, please contact:

Rhona Arinaitwe                                                                       

Senior Manager                                                          

Rhona.Arinaitwe@mtn.com                                                                   

MTN Uganda Limited                                   

 

Results Of the Initial Public Offer of MTN Uganda Limited

 

MTN Uganda Limited

(A company incorporated in Uganda on 25 February 1998 and converted to a public limited liability company under Registration No. P.498)

RESULTS OF THE INITIAL PUBLIC OFFER OF MTN UGANDA LIMITED

SBG Securities Uganda Limited, in its capacity as Transaction Adviser and Lead Sponsoring Broker, on behalf of MTN Uganda Limited (MTN Uganda or the Company), hereby announces the results of the Initial Public Offer (the Offer) of MTN Uganda. The Offer commenced on 11 October 2021 and closed on 22 November 2021 and was conducted by way of an offer for sale of 4 477 808 848 ordinary shares with a par value of UGX 1 each in the issued share capital of the Company at an offer price of UGX 200 per share.

Results of the Offer:

 

Offer Shares 4 477 808 848 ordinary shares
Number of Offer Shares allocated (Sale Shares and Incentive Shares) 2 902 003 800 ordinary shares
Total number of Applicants for Offer Shares 21 394
Total Offer Proceeds UGX 535 939 900 000

Crediting of Offer Shares to SCD Accounts and Refunds:

All successful Applicants will have their SCD Accounts credited with the number of Offer Shares applied for and allocated to them on 3 December 2021. The number of Offer Shares allocated to successful Applicants will include the corresponding number of Incentive Shares that each individual Applicant is entitled to in accordance with the terms and conditions of the Offer detailed in Section 18 of the Prospectus. Unsuccessful Applicants will be notified individually and will have their Application funds refunded within 14 days from 3 December 2021.

Listing of MTN Uganda and Commencement of Trading:

All the issued shares of MTN Uganda will be listed on the Main Investment Market Segment of the USE (the Listing) on 6 December 2021. In accordance with Rule 32(7) of the USE Listing Rules 2021, the USE has granted a waiver for MTN Uganda to list on the basis of the public float attained in the IPO. Trading in MTN Uganda’s shares on the USE will commence on 6 December 2021 at 9.30 a.m.

Top Ten Shareholders:

Following the Offer and immediately prior to the Listing, the top ten shareholders of MTN Uganda are as follows:

 

    Shareholder Number of Issued Shares Percentage Shareholding
MTN International (Mauritius) Limited 18 594 809 664 83.05%
National Social Security Fund 1 980 000 000 8.84%
Charles Mbire 892 230 775 3.99%
National Social Security Fund – Sanlam 58 590 000 0.26%
Bank of Uganda Defined Benefits Scheme – Sanlam 42 000 000 0.19%
National Social Security Fund (Kenya) – Sanlam 39 180 225 0.18%
Duet Africa Opportunities Master Fund IC 30 000 000 0.13%
EFG Hermes Oman LLC 26 855 500 0.12%
First Rand Bank Limited 22 000 000 0.10%
Uganda Revenue Authority Staff Benefit Scheme – Sanlam 18 900 000 0.08%
Other shareholders 684 478 075 3.06%
Total 22 389 044 239 100%

 

Continuing Shareholder and Investor Education

MTN Uganda has created a web-based hub to provide continuing shareholder and investor education after the Listing. Additional information may be obtained at: https://www.mtn.co.ug/investors.

 

SBG Securities Ltd Uganda
Transaction Adviser and Lead Sponsoring Broker
Legal Adviser
Legal Adviser

MTN And Stockbrokers make last call on IPO as SCD account holders more than double

MTN alongside its lead stockbrokers has today 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 today at the Kampala Serena Conference Center.

The MTN Initial Public Offer (IPO) was opened on 11th October 2021 and will close in three days’ time on Monday 22nd November 2021. The secondary sale of 4.5 billion shares by the MTN is at an offer price of UGX200 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 UGX100,000.

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 authorized 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,”

Vanhelleputte further 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 townhalls 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 on Monday 22nd November, 2021, 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.

“As management, we are committed to deliver the growth of the company so that potential investors and share holders get their returns. To the members of the public who are interested in the offer, it is still valid for three days until Monday 22nd November 2021 at 4pm,” Vanhelleputte concluded.

About MTN Uganda

MTN Uganda is a leading telecoms company in Uganda with a primary objective of carrying on the business of a national operator of a telecommunications network pursuant to the NTO licence granted by the UCC. Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices and MTN Mobile Money (which is conducted through subsidiary MTN Mobile Money Uganda Limited). MTN has a presence in all 134 districts of Uganda. Our services are delivered through a network of 119 077 Mobile Money agents, 200 service stores and 13 main distributors. At end-June 2021, MTN Uganda had 14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users.

For more information, please contact:

Rhona Arinaitwe

Senior Manager Corporate communication

Rhona.Arinaitwe@mtn.com

MTN Uganda receives consent from CMA Kenya to market its 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. SBG Securities Uganda Limited is the Transaction Advisor and Lead Sponsoring Broker for the MTN Uganda IPO and will be collaborating with SBG Securities Limited (Kenya) to market the IPO in Kenya.

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 UGX 200.00 per share. Each prospective shareholder must apply for at least 500 shares, which, if fully allocated, results in a minimum investment of UGX 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 EAT.

As the first telecommunications company to list on the Uganda Securities Exchange, MTN’s offer will contribute towards deepening the Ugandan and East African’s capital markets by enhancing public access to the growing stock market.

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 localization agenda aimed at prioritizing local investors with the goal of giving Ugandans and indeed East Africans the opportunity to own part of the company,” said Vanhelleputte, adding that Uganda is the fourth MTN operating market to get listed in Africa.

“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,” Vanhelleputte said.

Gregory Waweru, the Head of SBG Securities Kenya added that: “We welcome the opportunity to formally market the MTN Uganda IPO in Kenya, which sets a precedent in our capital market for Kenyan investors to participate in a regional cross-border offering within a structured framework. We are delighted to be part of this process, which underscores our commitment to drive the growth and development of investment opportunities available to Kenyan investors.”

MTN Uganda IPO prospectus approved by the Uganda Capital Markets Authority is available at www.mtn.co.ug/investors .

Kindly contact SBG Securities or Dyer & Blair in case of any queries:

SBG Securities Limited

2nd Floor, Stanbic Centre, Westlands Road, Nairobi

Tel: +254 (0)20 363 8900 /+254 (0)704 441 441/ +254 (0)739 441 441

Email: sbgs@stanbic.com

 

Dyer & Blair Investment Bank

7th Floor, Goodman Tower

Off Waiyaki Way, Nairobi

Tel: +254 (0) 709 930 000

Email: shares@dyerandblair.com

About the MTN Group

Launched in 1994, the MTN Group is a leading emerging market operator with a clear vision to lead the delivery of a bold new digital world to our 240 million customers in 21 countries in Africa and the Middle East. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code “MTN”. We are pursuing our Ambition 2021 strategy with a major focus on growth in data, fintech and digital businesses.

 

About MTN Uganda

MTN Uganda is a leading telecommunications company in Uganda with a primary objective of carrying on the business of a national operator of a telecommunications network pursuant to the National Telecommunications Operator (NTO) license granted by the Uganda Communications Commission (UCC). Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices and MTN Mobile Money (through its subsidiary MTN Mobile Money Uganda Limited). MTN has a presence in all 134 districts of Uganda. Our services are delivered through a network of 119,077 Mobile Money agents, 200 service stores and 13 main distributors. At end of June 2021, MTN Uganda had 14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users. Visit us at www.mtn.co.ug or follow us on www.youtube.com/mtnug and

www.twitter.com/mtnug or www.twitter.com/mtnugpro for assistance.

 

For more information, please contact: 

InvestorRelations.UG@mtn.com

MTN Uganda opens IPO with new m-IPO subscription channel

MTN Uganda Limited is pleased to announce the opening of 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.

 

 

MTN Uganda started operating in 1998. In the first half of 2021, it had 14.9 million subscribers, 8.6 million Mobile Money users and 4.7 million active data users.

The dates noted in this announcement may be subject to change.

 

About MTN Uganda

MTN Uganda is a leading telecoms company in Uganda with a primary objective of carrying on the business of a national operator of a telecommunications network pursuant to the NTO licence granted by the UCC. Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices and MTN Mobile Money (which is conducted through subsidiary MTN Mobile Money Uganda Limited). MTN has a presence in all 134 districts of Uganda. Our services are delivered through a network of 119 077 Mobile Money agents, 200 service stores and 13 main distributors. At end-June 2021, MTN Uganda had

14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users.

For more information, please contact:

Rhona Arinaitwe

Senior Manager Corporate communication Rhona.Arinaitwe@mtn.com

MTN Uganda announces intention to float 20% of its shares on the Uganda Securities Exchange

  • This will potentially be the largest IPO on the Ugandan market and will be delivered primarily through a digital paperless/ green platform which is the first of its kind in East Africa. 
  • The offer and listing of MTN Uganda is in line with MTN Group’s localisation plans to drive local ownership in the markets within which MTN operates. 
  • It is also in line with the policy objectives of the Government of Uganda as articulated in the National Broadband Policy (2018)and the Uganda Communication (Licensing) Regulations S. I No. 95 of 2019.

 

MTN Uganda is pleased to announce our intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE).  This follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20% of its shareholding in MTN Uganda to the public. MTN Group owns 96% of MTN Uganda.

The listing is in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda’s NTO licence, which require its listing by end-June 2022.

“The intention to float announcement is a major step towards delivering on our plan to list on the USE,” said Charles Mbire, Chairperson of the Board of Directors, MTN Uganda. “It is a reaffirmation of our long-term commitment to expand investment opportunities for Ugandans and we look forward to continuing our engagement with the CMA and USE to take forward the IPO and the listing.”

MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone: “Over the last 23 years, the people of Uganda have embraced MTN as their own and given us the legitimacy to operate throughout this country. We are reciprocating by inviting Ugandans to share in the ownership of the success that we have built together.”

In 1998, licence in hand, MTN Uganda commenced the rollout of our infrastructure and services. We provided affordable access to the people through a widespread voice and data network, investing UGX3.5 trillion in infrastructure development across the 134 districts of Uganda, both rural and urban. To facilitate universal access, we continue to contribute 2% of our gross annual revenue to the Uganda Communication Commission.

Over the years, MTN Uganda has prioritised the expansion of rural coverage. We currently cover 97% of the country’s population and have over 6,000km of fibre connectivity to provide the voice and data bandwidth that connects more than 15 million subscribers not only within the country but also across the world.

The growth in mobile penetration in Uganda from 0.27% in 1998 to 67% as of March 2021 is proof of MTN’s contribution to democratise mobile telephony. The fruits of this are evident in the widespread adoption of key technology platforms powered by high-speed connectivity, which enable the creation, distribution, and consumption of a wide range of digital services.

MTN Mobile Money (MoMo) has also revolutionised the financial landscape. Formal financial inclusion has nearly doubled from 28% in 2009 when MoMo was introduced in Uganda to 58% as of 2018.

MTN Uganda contributes an annual average of approximately UGX700 billion to the government treasury through taxes paid on our own account and as a withholding agent of government, making us the largest taxpayer in Uganda for the past decade.

We have over 1,000 direct employees and employ another 150,000 indirectly. Through our widespread distribution network, we provide a livelihood to more than 500,000 people, making MTN one of the largest employers in the country.

Ends.

 

About MTN Uganda

MTN Uganda is a leading telecommunications company in Uganda with a primary objective of carrying on the business of a national operator of a telecommunications network pursuant to the NTO licence granted by the Uganda Communications Commission. Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices and MTN Mobile Money (which is conducted through subsidiary MTN Mobile Money Uganda Limited). MTN has a presence in all 134 districts of Uganda. Our services are delivered through a network of approximately 145,000 active mobile money agents, 200 service stores and 14 main distributors. At end-June 2021, MTN Uganda had 14.9 million subscribers, 8.6 million MoMo users and 4.7 million active data users.

 

For more information, please contact:

Rhona Arinaitwe                                                                     

Senior Manager Corporate Communications and Public Relations

Rhona.Arinaitwe@mtn.com

MTN Uganda Limited