MTN Uganda has announced that it intends to offer 20 percent of its shares to the public through listing on the Uganda Securities Exchange (USE).
According to MTN, the Capital Markets Authority and Uganda Securities Exchange have approved their offer.
MTN Group, which owns 96% of MTN Uganda, says the listing is in line with their strategy 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 licence, which require 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, the chairperson of the Board of Directors, MTN Uganda, on Tuesday, October 5, 2021.
“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.
“Over the last 23 years, the people of Uganda have embraced MTN as their own and given us the legitimacy to operate throughout this country. We are reciprocating by inviting Ugandans to share in the ownership of the success that we have built together,” he said.
Paul Bwiso, the CEO Uganda Securities Exchange, said: “I want to thank MTN for its decision to be part of the USE. I thank all stakeholders who have participated in ensuring the timely delivery of this innovation on the market.”
MTN Uganda says since 1998, it has provided affordable access to the people through a widespread voice and data network, investing UGX3.5 trillion in infrastructure development across the 134 districts of Uganda, both rural and urban.
“To facilitate universal access, we continue to contribute 2% of our gross annual revenue to the Uganda Communication Commission,” MTN says.
MTN Uganda says currently, it covers 97% of the country’s population and have over 6,000km of fibre connectivity to provide the voice and data bandwidth that connects more than 15 million subscribers not only within the country but also across the world.
“The growth in mobile penetration in Uganda from 0.27% in 1998 to 67% as of March 2021 is proof of MTN’s contribution to democratise mobile telephony,” the company says.
MTN Mobile Money (MoMo) has also revolutionised the financial landscape. Formal financial inclusion has nearly doubled from 28% in 2009 when MoMo was introduced in Uganda to 58% as of 2018.
MTN Uganda contributes an annual average of approximately UGX700 billion to the government treasury through taxes paid on our own account and as a withholding agent of government, making us the largest taxpayer in Uganda for the past decade.
You must be logged in to post a comment.