- The company to list 20% of its shares on the USE
- Uganda is an important market for MTN group with a proud history
- IPO provides an opportunity to Ugandans to own a portion of this company with about 15 million subscribers.
Telecom company MTN has announced an initial public offer of 20% of its shares on the Uganda security exchange as the company marks 23 years of existence in Uganda.
MTN has become the first telecom company to list on the Uganda Security Exchange, a move which analysts have predicted could be good news for the not so active stock market.
The company's chairperson Charles Mbiire made the announcement on Tuesday and appealed to the local investors in the country to buy shares and facilitate the country's economic development.
"MTN has always looked forward to an opportunity to share its success with the people of Uganda. By listing MTN Uganda on the Uganda security exchange we look forward to deepening the bond between the MTN brand and the people of Uganda which underpins our commitment as a co-owner and partner in the growth of MTN Uganda and the entire economy of this great country that we are privilege to call home" said Mbiire
MTN entered the Ugandan Market on 22nd October 1998 when President Yoweri Museveni made the first call from State house Nakasero in Kampala to then President of South Africa the late Nelson Mandela.
According to Mr. Mbiire, "about 23 years later Uganda's mobile service penetration has grown phenomenally from a low of 0.27% to 70% as of march 31st 2021 with MTN playing a big role as a market leader".
Statistics show that out of every 10 Ugandans at least 7 have access to mobile telephone services today.
MTN vice president for Southern and Eastern Africa Yolanda Cuba says for the next three years MTN will have invested about 1 trillion shillings into the country's economy.
"Uganda is an important market for MTN group. We have a proud history of partnering with Uganda and Ugandans to actually make sure that we foster and ensure faster and inclusive growth through digital transformation with this particular country we call home." she said.
Cuba noted that they want every individual, every customer to own a piece of this company adding that,"it is therefore most rewarding to be able to give a broad base of Ugandans the opportunity to meaningfully share the success of MTN in this country".
She also pledged to continue extending Good Corporation between the company and the government.
Paul Bwiso, the Chief Executive Officer Uganda Security Exchange, said they are proud to be part of the tenth IPO by MTN.
“When MTN Uganda eventually lists on the market, it will provide investors with a new sector. That is the telecom sector which is fast growing technology sector within Uganda” he averred.
He explained that this IPO provides an opportunity to Ugandans to own a portion of this company which is one of the dominant telecom companies in Uganda with about 15 million subscribers.
Other telecoms are also by law expected to list on the exchange even as none has indicated when they will be floating shares.