MTN Uganda Limited has floated another 1,574,807,373 ordinary shares to the public nearly three years after its Initial Public Offer (IPO) and eventual listing on the Uganda Stock Exchange.
The new offer represents a 7.03% stake, which completes the full 20% shares that the company initially offered in its IPO in December 2021. I
Each share costs UGX 170, which is a drop by UGX30 from the initial price of UGX200 at the start of the IPO.
The minimum number of sale shares for which an application must be made is 1,400.
“Applications for greater than this minimum must be in multiples of 420 Sale Shares with no limit on the number of Sale Shares that a qualifying investor can apply for,” MTN Uganda said in a statement issued on Monday, May 27, 2024.
According to the telecom company, the current offer is being undertaken to broaden Ugandan shareholding in the company and provide an opportunity to Ugandan retail and professional investors, including MTN Uganda’s loyal customers, to own a stake in the company and participate in its future growth.
“In addition, the Offer is being undertaken to comply with the requirements of the Company’s national telecommunications operator licence, the National Broadband Policy 2018, and the regulations issued by the Uganda Communications Commission,” the company added in a statement.
MTN said the offer is being made per Rule 15(a) of the Uganda Securities Exchange (USE) Listing Rules 2021, by which an existing shareholder of an issuer with equity securities already listed on the USE may conduct an offer for sale of shares to the public on the secondary market.
“The USE has provided its no-objection to the offer,” the company said.
The secondary offer of ordinary shares is open to the public from Monday, 27 May 2024- Monday, 10 June 2024.
Qualifying investors for the sale shares are retail investors and Ugandan, East African, and international professional investors. Retail investors are persons who own and trade in securities for their own account, and who do so in a non-professional capacity.
A qualifying investor may apply to purchase sale shares in the following ways:
- electronically, by accessing the USE Easy-Portal at https://scd.use.or.ug/. This option is available to qualifying investors on a self-service or assisted basis; and
- physically, by contacting one of the licensed stockbrokers and trading members of the USE listed on the USE website at https://www.use.or.ug/content/trading-participants for assistance.
In addition to the aggregate offer price, a qualifying investor for the sale of shares will be required to pay all commissions related to the Sale Shares purchased by that investor in accordance with the USE Fees, Charges and Penalties Rules 2021. These are commissions payable to the USE, the Capital Markets Authority, the Capital Markets Authority Investor Compensation Fund and the SCD.
The sole responsibility for allocating the Sale Shares lies with the Selling Shareholder, and applications will be considered in the following order: (a) first, Ugandan and East African retail investors and (b) second, professional investors. In the event of oversubscription, Ugandan and East African retail investors will be prioritised in accordance with the Offer’s objective to broaden local shareholding in MTN Uganda.
Following an application by MTN Uganda, the USE has approved the voluntary suspension of trading in the Company’s shares for the period 27 May 2024 to 12 June 2024 in accordance with Rule 5(1)(c) of the USE Listing Rules.
“The voluntary suspension of trading in MTN Uganda’s shares is considered appropriate to facilitate the implementation and conclusion of the Offer without disrupting the market price of the company’s shares, ensuring an orderly market in the process. A further announcement will be made when the suspension is lifted and normal trading in the company’s shares can resume,” the statement adds.
At the annual general meeting of MTN Uganda for the year ended 31 December 2023 which took place on 22 May 2024, the shareholders of the company approved and declared the payment of a final dividend of UGX 6.4 per ordinary share (UGX 143.3 billion).
MTN Uganda was listed on the Uganda Securities Exchange (USE) having raised Shs535.9b (or $151m) from its IPO.