MTN Uganda has announced the sale of a portion of its shares to the public. These shares were not purchased during the initial public offering (IPO) and will now be available for purchase by anyone interested.
The shares will be sold at the current market price of sh170 per share. There’s a condition that each investor must buy at least 1,400 shares.
This sale, called a secondary offer, is being done in line with the rules set by the Uganda Securities Exchange (USE). The goal is to increase the amount of MTN Uganda’s shares available to the public. Currently, only 12.97% of the company’s shares are publicly available, and this sale aims to meet the requirement of having at least 20% of the shares available to the public. This requirement is outlined in various regulations, including the Broadband Policy of 2018 and regulations from the Uganda Communications Commission.
The remaining 7.03% of the shares are now open for purchase by retail investors, Ugandans, East African, and international professional investors.
MTN Uganda’s CEO, Sylvia Mulinge, has stated that investors participating in this offer will receive additional shares at no extra cost. For every 140 shares bought, investors will receive 30 incentive shares.
Paul Bwiso, the chief executive at the Uganda Securities Exchange, has announced that trading in MTN Uganda shares will be temporarily suspended from May 27 to June 12. This suspension is to make it easier to carry out the offer and to ensure that the market remains orderly during this time.
This offer comes after MTN Uganda’s listing on the Uganda Securities Exchange in December 2021. During that listing, the company was allowed to list its shares even though it did not meet the 20% public float requirement.
