When MTN Uganda launched on the Uganda Stock Exchange (USE) in 2021, the listing raised the biggest capital—$4.43 billion—in the 24 year-history of the bourse, but the IPO was also the first undersubscribed round in USE’s history.
The company, at the time, failed to sell every portion of its shares allotted to local investors. Ugandan regulation mandated MTN to sell 20% of its shares to local investors, but the it only managed to sell 13% of the shares.
In May this year, MTN sought to fix that. It announced the sale of its remaining shares from the 2021 listing, offering over 1 billion ordinary shares on the Ugandan bourse. It gave a 14-day window—May 27 and June 10— for the sale of the shares.
In a rather positive turn of events, the results are out, and the indicate that the round has been significantly oversubscribed.
MTN offered 1.6 billion shares for sale, but it received applications for 3 billion shares. The announcement of the results also meant that MTN has resumed trading in its stock, which it briefly suspended due to the sale of its shares.
Investors in MTN Uganda are in for a good ride, as the telecom, with a subscriber base of about 15 million, has seen continuous revenue growth and high-profit margins, translating to huge dividends
If you’re in Uganda and you missed out on the deal, better luck next time!
