MTN Uganda has completed its secondary offer to the public, selling a 7% stake over a 10-day period that concluded on June 10th. The offer, which involved up to 1.57 billion ordinary shares, was priced at 170 Ugandan shillings per share, with a minimum purchase requirement of 1,400 shares.
The shares were offered by MTN International (Mauritius), the parent company of MTN Uganda. The purpose of the share sale was to increase MTN’s public float from its current level of 12.97% to meet the 20% free float requirement outlined in the Broadband Policy of 2018.
During the offer period, trading of MTN shares on the Uganda Securities Exchange (USE) was temporarily suspended in accordance with the listing rules of the exchange. This measure ensured that the market remained stable and that all investors had equal access to the offer.
While the details of the offer’s performance are yet to be disclosed by MTN, the conclusion of the public offering marks a significant milestone for the telecom company. MTN Uganda’s listing on the USE in 2021 has provided opportunities for both local and international investors to participate in the company’s growth and expansion initiatives.
The successful completion of the public offering demonstrates investor confidence in MTN’s business prospects and the telecommunications sector in Uganda. It also underscores MTN’s commitment to regulatory compliance and transparency in its operations.
As the telecom industry continues to evolve and adapt to changing market dynamics, MTN’s efforts to increase public participation and meet regulatory requirements are expected to contribute to the development of the sector and the broader economy.
Moving forward, investors and stakeholders will be keen to see how the proceeds from the public offering will be utilized by MTN to further enhance its services, infrastructure, and market position in Uganda.
