Capital Markets Authority (CMA) Kenya 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 last month.
The marketing in Kenya is spearheaded by SBG Securities, Dyer & Blair, both of whom are licensed market intermediaries in Kenya, working in collaboration with their respective affiliates in Uganda. SBG Securities Uganda Limited is the Transaction Advisor and Lead Sponsoring Broker for the MTN Uganda IPO and will be collaborating with SBG Securities Limited (Kenya) to market the IPO in Kenya.
The MTN Uganda IPO offers 4.5 billion ordinary shares for sale, accounting for a 20 percent stake of the company, at a price of UGX200 per share. Each prospective shareholder must apply for at least 500 shares (minimum shares to apply for) which is if fully allocated, results in a minimum investment of UGX100,000 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.
All East Africans who apply for shares will receive 5 bonus shares for every 100 shares they are allocated. Applying for shares begun on October 11th, 2021 is scheduled to close on November 22nd, 2021 at 4 PM EAT.
As the first telecommunications company to list on the Uganda Securities Exchange, MTN’s offer will contribute towards deepening the Ugandan and East African capital markets by enhancing public access to the growing stock market.
While speaking to the Kenyan media in a virtual meeting about the offer, MTN Uganda Chief Executive Officer Mr. Wim Vanhelleputte said that the decision to float shares on the stock market is part of MTN’s localization agenda aimed at aligning the telco’s priorities more closely with the development agendas of its operating markets, in particular, and the African continent, as enshrined in the MTN Ambition 2025 strategy.
“The decision to list MTN on the Uganda Securities Exchange is in line with our localization agenda aimed at prioritizing local investors. With the goal of giving Ugandans and indeed East Africans the opportunity to own part of the company, adding that Uganda is the fourth MTN operating market to get listed in Africa,” said Vanhelleputte.
Vanhelleputte added that “During MTN’s 23 years in Uganda, we have grown tremendously, thanks to the enabling environment availed by the Government of Uganda —the unwavering support and trust of the people of Uganda and East Africa as a whole”.
“We look forward to welcoming Ugandan and indeed East African retail investors as part-owners of a company that we have collectively built and that we’ll continue to grow together,” Vanhelleputte said.
How to apply for MTN Uganda shares, but firstly, you need to have an SCD Account. To create your SCD Account,
- Go to https://scd.use.or.ug/ web URL, open an account so that you can create your SCD Account.
- From your USE Easy Portal dashboard, under ‘Portfolio Summary’ select create SCD Account.
- While creating your SCD Account you will be required to input your biodata that requires your personal details like Name, Title, Date of Birth, and Gender. Other information that is required includes; Identification Documents, Contact Information, Bank Information, and Broker Information.
- Once completed and approved, you can then go ahead to buy shares in MTN Uganda.
Also note that with your SCD account, you can buy or sell shares in any of the companies on Uganda’s stock market including MTN Shares.
Now to buy share;
- Dial *165*65# and press ok.
- Press Option 2 to ‘Apply for MTN Shares’.
- Select Option 1 ‘For Self’ so that you can buy MTN Shares for yourself. However, you can also buy for another person by selecting option 2. But this time press option 1 to buy for yourself.
- Type 1 to confirm your SCD Account details. (Please NOTE that to continue up to this step you need to have an SCD Account first.)
- From the shares options, select the number of shares that you want to buy.
- To finish buying off the shares, you will be required to enter your mobile money pin as confirmation for payment.
- Press 1 to confirm that you have read the MTN IPO Prospectus and accepting the Terms and Conditions.
- All will be done.