MTN Uganda has announced its intention to sell 20% of its shares to the public by listing on the local stock exchange in fulfilment of its obligation under the National Telecom Operator licence.
Uganda Communications Commission Executive Director, Irene Kaggwa Sewankambo, said it is an opportunity for every Ugandan to invest and own a share in MTN.
The telecom intends to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE).
This follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20% of its shareholding in MTN Uganda to the public.
MTN Group owns 96% of MTN Uganda.
The listing is in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries.
It is also in line with the provisions of MTN Uganda’s NTO license, which requires its listing by end of June 2022.
“The intention to float announcement is a major step towards delivering on our plan to list on the USE,” said Charles Mbire, Chairperson of the Board of Directors, MTN Uganda.
“It is a reaffirmation of our long-term commitment to expand investment opportunities for Ugandans and we look forward to continuing our engagement with the CMA and USE to take forward the IPO and the listing.” He added.
MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone, saying over the last 23 years, the people of Uganda have embraced MTN as their own and given it the legitimacy to operate throughout this country.
MTN has over 1,000 direct employees and employ another 150,000 indirectly.