MTN Uganda Chairman ring the opening bell upon the successful offer completion.
MTN Uganda’s sale of shares left over from its 2021 Initial Public Offering was oversubscribed by almost 100%, the telecom executives said on June 13.
The company received applications for 3 billion shares against 1.6 billion shares on offer, The shares sold represent 7.03% of the company’s total equity.
The firm’s 2021 IPO, in which it sought to sell 20% of its shareholding to expand local ownership to fulfill a regulatory requirement, was deeply undersubscribed.
Last month, MTN announced it was offering the shares left over from that IPO in a new sale on the secondary market at the Uganda Securities Exchange, where it is listed.
The share sale took place between May 27 and June 10. The company did not say how much it raised from the offer. MTN said it would issue an additional statement laying out the details of the offer results around June 20.
MTN has a subscriber base of about 15 million people and also offers mobile money financial services.
Charles Mbire, the company’s chairman said, “our journey began in 1998 with a vision to not only transform the telecommunications sector in Uganda, but to also change the lives of the people in our communities by improving digital access, driving financial inclusion and enhancing social development.”
We aspire to connect Ugandans to the world, anchored on the belief that “Everybody deserves the benefits of a modern connected world”.
Last year, MTN Uganda celebrated 25 years in Uganda.
“When I look back over this time, I am proud of the remarkable milestones that we have achieved together,” he said, “From expanding our network coverage, to introducing groundbreaking mobile financial services that have transformed lives and businesses, to becoming the first to launch commercial 5G services in Uganda, MTN Uganda has offered innovative and reliable solutions that cater to the needs of Ugandans.”
The company has established a sustainable platform for growth. “From this base, we are able to meet the growing and dynamic needs of our customers and the communities in which we operate,” Mbire said.
He said the listing is MTN’s commitment towards localisation and inviting Ugandans to be part of its growth story.
“Localisation is a key objective for us as we prioritise creating shared value, broadening local participation and ownership in MTN Uganda, and deepening the Uganda capital markets,” he said.
As with the initial public offer, the recently concluded secondary offer was entirely successful.
In addition to being oversubscribed, the offer has resulted in approximately 19,600 Ugandan investors owning a stake in the company.
“We are proud to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country,” Mbire said.
Sylvia Mulinge, MTN Uganda’s chief executive said, “I wish to affirm that MTN Uganda remains steadfast in its commitment to pursuing ventures that are beneficial to the people of Uganda. We believe in creating shared value and contributing to the country’s socio-economic development,” she said, “Our various corporate social investments, as well as digital and financial inclusion initiatives, are a testament to this commitment. We will continue to invest in projects that uplift our communities.”
Mulinge refuted false reports suggesting that MTN Mobile Money would separate from the main MTN business. He urged shareholders to remain confident and trust the company’s management.