KAMPALA – At just 200, Ugandans can own a part of MTN Uganda. While speaking on Monday morning in Kampala, MTN Uganda CEO Wim Vanhellepute said the MTN IPO is officially open and the offer is open for the next six weeks during which anyone interested can apply for their share of the company.
“Today, the MTN Uganda shareholder MTN South Africa is offering the general public 20% of its shares at the value of UGX200 per share. In total, MTN will sell Four and a half billion of its shares at the value of UGX 200 per share.
The total number of shares of the company MTN Uganda is Twenty-two and a half billion and 20% of that which is Four and a half billion is now for sale by MTN South Africa to the general public at the value of UGX200 per share.”
MTN Uganda CEO Wim Vanhelleputte speaking earlier today
According to the company, the offer for sale is 4,477,808,848 ordinary shares with a par value of UGX 1 each at an offer price of UGX 200 per share, and listing of the entire issued share capital of MTN Uganda Limited on the Main Investment Market Segment of the Uganda Securities Exchange
In his letter to investors, MTN Uganda Chairman Charles Mbire said: “The Offer and the Listing are being undertaken to comply with the requirements of the National Broadband Policy, NTO Licence and regulations issued by the UCC, and could not have come at a more opportune moment for the Company. The Offer is also being undertaken by MTN Group in pursuance of its objective to broaden Ugandan shareholding in MTN and provide an opportunity to Ugandan investors, including MTN’s loyal customers, to own a stake in the Company and participate in its future growth.”
He added: “The Listing will have several benefits for all stakeholders. MTN will have broader local ownership consistent with its philosophy of local stakeholder participation thereby enabling Ugandans to own part of and share in the success of the Company and will benefit from enhanced governance standards and a higher profile. Investors will benefit from dividends (when declared by the Company) and a capital gain per share depending on the performance of the Company over time and its trading activity. The capital markets on the whole will be strengthened with the USE benefitting from an increased market capitalisation and share liquidity, giving the Ugandan investing public the opportunity to transact in the shares of the Company and to realise the value of their investment.”
Status of the Company’s Shares
According to MTN Uganda, the share capital of MTN consists of only one class: ordinary shares. Therefore, all of the Company’s Shares rank on equal footing (pari passu) and no preferential rights apply.
“Every shareholder who is entered in the Company’s register of members as of the relevant date will have the right to attend and vote at the general meetings of the Company (with each Share carrying one vote except in the event of a vote by poll where voting will be based on the number of Shares held), the right to participate in full in all dividends and other distributions declared in respect of the Shares the relevant shareholder owns and the right to participate in all surpluses in the event of the liquidation or winding up of the Company,” the company says, adding that:
“The Shares are not subject to any right of preemption or right of first refusal, and any shareholder (other than a shareholder who is a party to the Lockin Agreement which only takes effect on the Listing Date) who wishes to transfer Shares owned in the Company may do so freely through the SCD share transfer framework.”
In conclusion: “Following the Listing, the Company’s will have 5,610,955,761 unissued Shares. In the event that the Board approves the allotment of these unissued Shares, or any other un-issued shares that may be created in the future, the unissued shares shall first be offered to the Company’s then-existing shareholders pro rata their shareholding. However, the shareholders may authorise the Board to allot unissued Shares in any other manner that the Directors, acting in the best interests of the Company, deem fit,” MTN says.