The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Telecom firm, MTN Uganda, is selling more than 1.5 billion ordinary shares, originally unsold during the initial public offering (IPO), to the public at the current market price of UGX 170 per share. Each investor must purchase a minimum of 1,400 shares.
This secondary offer, conducted in accordance with Uganda Securities Exchange (USE) Listing Rules, seeks to increase MTN Uganda’s public float from the current 12.97% achieved during the IPO to meet the 20% free float requirement set by the Broadband Policy of 2018, the Uganda Communications Commission, and the national telecommunications operator license regulations.
The additional 7.03% stake is available for purchase by retail investors, as well as Ugandan, East African, and international professional investors.
“Participating investors will receive incentive shares at no extra cost, with 30 incentive shares allocated for every 140 sale shares,” said MTN Uganda CEO Sylvia Mulinge. “Professional or institutional investors allocated Sale Shares will be subject to a six-month lock-in period to ensure market stability.”
Mulinge said the lock-in restriction is necessary to maintain an orderly market for MTN Uganda’s shares, prevent market distortions, and protect the interests of existing shareholders who do not participate in the offer.
Only shareholders registered in the company’s books by the close of the share sale will be eligible to receive a final dividend of UGX 6.4 per share for the year ended December 31, 2023.
Paul Bwiso, the chief executive officer of Uganda Securities Exchange, meanwhile, announced a voluntary suspension of trading in MTN Uganda shares until June 12, 2024, to facilitate the offer and ensure an orderly market.
The new offer follows MTN Uganda’s listing on the USE in December 2021, where the company was granted a waiver to list, with only a 12.97% public float attained during the initial public offer.
