NAIROBI, Kenya, Dec 6 – MTN Uganda has raised Sh16.94 billion in its Initial Public Offering (IPO), falling short of the target by 36 percent.
In a statement the telco said it had offered 4.5 billion shares to investors who bought 2.9 billion shares, less than two -thirds of its target.
MTN Group was selling a fifth of its stake in the firm at a price of Sh6.2 a share in line with regulatory requirements.
Following the IPO, which was opened to East African investors –from Uganda, Kenya, Tanzania, Rwanda and Burundi, MTN Group now has 83.05 percent stake in Its Uganda Subsidiary from the previous 96 percent.
The IPO attracted some Kenya Investors with Kenya’s National Social Security Fund (NSSF) taking the lead, buying 39.1 million shares in the Ugandan unit of South African-owned MTN for a 0.18 stake, securing sixth place among the top ten shareholders.
Other top ten investors include Duet Africa Opportunities Master Fund IC, EFG Hermes Oman LLC, FirstRand Bank and local pension funds for the Ugandan central bank and tax authority.
The shares will start trading on the Nairobi Securities Exchange (NSE) on December 7.
The listing will make MTN Uganda the second publicly traded telco in EAC after Safaricom IPO on the NSE in 2008.
The IPO, the first in the country in more than three years, is also the biggest since Umeme Ltd. raised about $66 million in 2012, according to data compiled by Bloomberg.
Kenyan investment bank Dyer and Blair, was the lead retail broker for the MTN IPO.
According to Dyer, MTN Uganda has consistently upheld its market leadership position in mobile subscriptions in Uganda, growing its market share from 47 percent in 2016 to 50 percent in 2020.
As at 30th June 2021, MTNU’s market share stood at 59.1 percent.