MTN Uganda has announced plans for an Initial Public Offering (IPO), looking to sell a fifth of its stake to East African investors. This includes investors from Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan.
MTN Uganda was granted two years starting July 1 2020, to list 20% of its equity on the Ugandan Securities Exchange, with the country’s Capital Markets Authority (CMA) Chief Executive, Keith Kalyegira, saying the IPO is expected to raise about $1.2 billion.
Further, the IPO is expected to boost the number of retail investors at the Uganda Securities Exchange from about 40,000 to 200,000 investors.
The listing will make MTN Uganda the second publicly traded telecom in EAC after Safaricom’s IPO on the Nairobi Securities Exchange in 2008.
MTN Uganda, which has 15 million subscribers, had its operating licence renewed for 12 years in February last year after paying $100 million with the local listing requirement as a precondition for the permit nod.