MTN Uganda rolled out an official onslaught to start marketing its initial public offering (IPO) in Kenya after Capital Markets Authority (CMA) gave it the nod.

The Ugandan telco’s will be in the marketing with 4.4 billion ordinary shares, accounting for a 20 per cent stake of the company, at a price of USh200.00 (Sh6.30) per share.

“Kenya’s 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 October 11, 2021,” MTN said in a statement.

500 shares

According to the telco, each prospective shareholder must apply for at least 500 shares, which if fully allocated, will result in a minimum investment of USh100,000 (Sh3,140) per shareholder.

“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,” MTN said.

The telco said that all East Africans who apply for shares, will receive five bonus shares for every 100 shares they are allocated. The MTN Uganda IPO will close on Monday November 22,  2021 at 4pm EAT.

The marketing in Kenya is spearheaded by SBG Securities, and Dyer and Blair, both of whom are licensed market intermediaries in Kenya, working in collaboration with their respective affiliates in Uganda.

Marketing deal

SBG Securities Uganda Limited is the transaction advisor and lead broker for the MTN Uganda IPO and will be collaborating with SBG Securities Limited (Kenya) to market the IPO in Kenya.

As the first telco to list on the Uganda Securities Exchange, MTN’s offer will contribute towards deepening the Ugandan and East Africa’s capital markets sector by enhancing public access to the stock market.

Speaking to analysts and the media, MTN Uganda chief executive Wim Vanhelleputte said the decision to float shares on the stock market is part of MTN’s agenda to contribute in the growth of local economies in which they operate.