MTN Uganda said its initial public offering raised UGX 535.94 billion, less than two-thirds of its target. At least 2.9 billion shares were allotted out of the 4.5 billion shares offered, and the stock started trading on 6th December.
Uganda and Kenya’s national social security funds, Duet Africa Opportunities Master Fund IC, EFG Hermes Oman LLC, First rand Bank and local pension funds for the Ugandan central bank and tax authority were among the top buyers of stakes in MTN Uganda, according to a statement released by the telco.
The IPO had been tipped to be Uganda’s biggest ever in more than three years since Umeme raised about $66m in 2012. Currently, it’s seen as a major boost to the stock market, which comprises a small bourse with 40,000 investors trading just 17 stocks.
MTN Group was selling a fifth of its stake in its Ugandan subsidiary at a price of Ush 200 apiece.
To motivate investors, the telco offered free shares of between five and 10 units for every 100 units allocated. It required applications for the purchase of at least 1.1 billion shares.
The listing will also make MTN Uganda the second publicly traded telco in EAC after Kenya’s Safaricom IPO on the NSE in 2008.
