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MTN offers 1.5 billion additional shares to Ugandans

Peter 28th May, 2024 Telecommunication Business Edge Reporter
MTN offers 1.5 billion additional shares to Ugandans

ALL SET: L-R MTN Chief Financial Officer Andrew Bugembe, SBG Securities CEO Grace Semakula, MTN Uganda CEO Sylvia Mulinge, USE CEO Paul Bwiso and MTN MOMO CEO Richard Yego, at the announcement of the 1.5 billion share offer.


MTN Uganda has received the green light from the capital markets regulators to sell more than 1.5 billion ordinary shares to the public.

The minimum number of Sale Shares to be applied for per investor is 1,400 at the price of UGX170 per share (about UGX240,000) and applications for shares must be received not later June 10, 2024.

The company said in a press release that the offer is being undertaken in accordance with their objective to broaden Ugandan shareholding in the Company and to provide an opportunity to Ugandan retail and professional investors, including MTN Uganda’s loyal customers, to own a stake in the Company and participate in its future growth.

  • MTN Uganda first floated shares on the Uganda Securities Exchange (USE) in an initial public offering (IPO) in December 2021, selling 12.97% of the mandatory 20% of its shareholding, at UGX200 per share. The USE has now granted a waiver for the Company to float the balance of 7.03% at UGX170 per share, which is the current trading price per share on the securities exchange.

At their recent annual general meeting, MTN Uganda shareholders approved and declared the payment of a final dividend of UGX 6.4 per ordinary share (UGX 143.3 billion), which is to be paid to shareholders who will be on the books by close of business on June 12, 2024.

This implies that the new shareholders would benefit from the dividend payment come June 25.

  • The new applicants for shares, who must first obtain a securities central depository (SCD) account, may be Ugandan retail investors or local, East African and international professional investors.

Additionally, the company is to allocate 'incentive shares' to participating investors at no additional cost, aimed at encouraging meaningful participation in the offer. For every 140 shares bought, 30 incentive shares will be offered, which would effectively bring the price to about UGX140 per share.

In order to facilitate a proper sale, the trading of MTN Uganda shares on the USE has been suspended and will remain suspended until end of business on June 10.

Furthermore, professional investors will not be allowed to trade their MTN shares on the exchange for the next six months.

The company explained that this ‘lock-in restriction’ is appropriate to ensure an orderly market for MTN shares following the conclusion of the share offer, and to avoid distorting or creating a ‘false market’ for the company’s shares and to protect the interests of existing shareholders who will not have participated in the share offer.

  • However, investors based in a country that is the subject of sanctions from a domestic or internationally-recognised sanctions authority, are ineligible to apply for shares.

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