According to market experts, one of Africa’s largest telecommunication operators, MTN, is scheduled for a listing in Uganda before June 2022, which will be a breath of fresh air for the Uganda Securities Exchange (USE). To meet a requirement under the National Broadband Policy, MTN is set to sell 20 per cent of its shares in an Initial Public Offering.
In an interview, Mr Stephen Kaboyo, the managing partner of Alpha Capital, recently stated that MTN would be a substantial listing, noting that the market has undergone long periods of no listing in the last ten years. “In the last 24 years, we have not had a company of this magnitude list,” he said.
MTN is Uganda’s largest telecom operator, with a market share of approximately 46 per cent. According to its 2020 financials, the telecom has gross revenue of over US$ 424. 6 million, making it a must-buy for many investors. In addition, MTN is or has already been listed in several African markets, including Ghana, where it floated 4.6 billion ordinary shares valued at US$ 537.9 million or 35 per cent.
Mr William Nyakatura, the managing partner of Kinzman Advisory, told BMA sources that MTN’s IPO would likely attract new investors looking for a share in one of Uganda’s most profitable companies. “We will see new shareholders and reactivation of former account holders who had previous stock such as Umeme, dfcu, and Stanbic if the marketing and storytelling are done correctly,” he said.
Experts have queried whether MTN’s IPO will boost activity at the Exchange, considering that several investors have previously purchased shares from various companies before holding onto them, thus starving the market.
MTN has not stated when it plans to go public, although analysts familiar with the matter have previously stated that preparations are well along. The prospectus will be the final public notice, including the number of shares and their allocation, the offer’s timetable, shares set aside for Ugandans, dividend payment history, and critical financial statements.