An MTN stand at an expo. It has received regulatory approvals to list 20 percent of its shareholding. Photo Nation Media Group
MTN Uganda has kicked off a marketing blitz for its initial public offering (IPO) in meetings with Kenyan professional groups and retail investors in Nairobi to bolster subscription.
The $250 million IPO opened mid-last month and closes on November 22.
“Kenya’s Capital Markets Authority (CMA) 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 firm said in a statement Thursday.
Investors can apply for shares through SBG Securities, a subsidiary of South Africa's Stanbic Holdings Plc and Dyer and Blair which is the lead retail broker.
The IPO is open to citizens of the East African Community member states, with each investment, pegged at a minimum of 500 shares which if fully allocated results in a minimum investment of Ush100,000 (about $28).
“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,” said the telco.
South Africa’s MTN Group is selling 4.47 billion shares or a fifth of its stake in its Ugandan subsidiary to investors at a price equivalent to Ush200 ($0.06) apiece.
“All East Africans who apply for shares, will receive 5 bonus shares for every 100 shares they are allocated,” said MTN. - BRIAN NGUGI, The EastAfrican
