MTN to float 20% of its shares on the Uganda SE

This will potentially be the largest IPO on the Ugandan market and will be delivered primarily through a digital paperless/ green platform which is the first of its kind in East Africa

Kampala, Uganda | THE INDEPENDENT | MTN Uganda has today announced intentions to float 20% of their shares on the Uganda Stock Exchange.

“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.”

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.”

Following a protracted negotiation that dragged on for nearly two years, MTN Uganda finally reached an agreement for a long-term renewal of its operating license in Uganda last year. MTN Uganda reached an agreement with Uganda Communications Commission to pay USD 100 million for a 12-year license in Uganda valid from July 1, 2020.

An initial public offering was one of the conditions for the renewal of the license.

The Capital Markets Authority expects to reap Non Tax Revenue of  1.15 billion Shillings from the listing of telecom giant MTN Uganda on the Uganda Securities Exchange.

MTN Uganda  contributed about 5% ($570m) of the total revenue ($11bn) of the MTN Group in 2020.

MTN history in Uganda

In 1998, licence in hand, MTN Uganda commenced the rollout of infrastructure and services. They 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, the company continues to contribute 2% of gross annual revenue to the Uganda Communication Commission.

Over the years, MTN Uganda has prioritised the expansion of rural coverage and currently cover 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 fruits of this are evident in the widespread adoption of key technology platforms powered by high-speed connectivity, which enable the creation, distribution, and consumption of a wide range of digital services,” MTN said in a statement.

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, making them the largest taxpayer in Uganda for the past decade.