Soko Analyst’s Take On The MTN IPO

By Soko Directory Team / Published November 19, 2021 | 5:19 pm




KEY POINTS

MTN Uganda has since grown to be the leading Telecommunications Company in Uganda and still growing and looking at the future with confidence as they adapt to more technology to serve their customers better.


Money Market Funds

To all who have been asking me where to invest, well MTN Uganda has presented us with an amazing opportunity to invest & make some money as we recover from the COVID-19 economic meltdown.

The fact is MTN Uganda has since grown to be the leading Telecommunications Company in Uganda and still growing and looking at the future with confidence as they adapt to more technology to serve their customers better.

The company has very strong fundamentals and though analysts are divided on the price valuation, this offer is the best in the last decade. Before this, I can confidently say that Safaricom has been the best investment for retail investors since it was listed on the Nairobi Securities Exchange.

First thing first, MTN Uganda is located in Kampala, Uganda, and is part of the Other Telecommunications Industry. MTN (U) LTD has 3,000 employees at this location and generates $1.12 billion in sales (USD). This is bound to double as the brand roars into the future with this.

MTN is offering 4.5 billion shares, This was quoted by Mr. Vanhelleputte, The CEO said after the unit of South Africa’s MTN Group secured regulatory approval last week.

What is their objective? To Take part in activities of general interest, having a philanthropic focus on education, science and technology, music, arts and culture, health, habitat for humanity, and other actions of the humanitarian character and Contribute to the promotion and protection of material heritage and national culture.

How old is MTN Uganda? The brand was launched on October 21, 1998, and started commercial services in Uganda, just six months after acquiring and signing the license. It has since grown to be the leading Telecommunications Company in Uganda.

In a nutshell, I can say that MTN Uganda is the Safaricom of Uganda if am to put things into their proper perspective. Do you agree? At the same time, launched in 1994, the MTN Group Limited (MTN Group) is a multinational telecommunications group, with its core operations in 21 countries in Africa and the Middle East. Imagine, operations in 21 countries.

Please have a look at their prospectus here before we continue.

MTN believes that Everybody deserves the benefits of modern, connected life. It is important that you read this PROSPECTUS on the MTNIPO to give you a better understanding of what it is all about and how you can benefit or be part of the success story of the company.

MTN has already announced the initial public offer (IPO) of 20 percent of its ordinary shares, following approvals by the Capital Markets Authority of Uganda (CMA) and the Uganda Securities Exchange (USE).

The secondary sale of 4.4 billion shares by the MTN Group will be at an offer price of UGX200 per share. The offer opened on 11 October 2021 and will close on Monday 22 November 2021. MTN Group currently holds 96 percent of MTN Uganda. Though they may extend the Period.

Yolanda Cuba, MTN Group Vice President for Southern and East Africa, said the IPO would give Ugandans & Kenyans an opportunity to participate in the ownership of their country’s leading mobile operator and, in doing so, help deepen Uganda’s capital markets.

The offer aims to facilitate the broadest possible shareholder base in Uganda, with Ugandan Retail Investors making Applications for Offer Shares of an aggregate minimum value of UGX 5 million to be allocated the full number of Offer Shares for that minimum value applied for.

A unique digital channel will be available to retail investors for IPO subscription: the m-IPO portal, accessible via USSD and via the MyMTN App. Traditional payment channels will also be available across Uganda at Stanbic Bank, Absa Bank, and Standard Chartered Bank branches and authorized selling agents.

In Kenya, those keen to participate in the MTN IPO can be able to do so through Dyer and Blair and this evening they will be joining me on our  Twitter Space on @SokoAnalyst to discuss this IPO in detail.

The IPO includes a broad share incentive scheme and Ugandan retail investors, in particular, using the M-IPO channel are eligible to receive 10 additional incentive shares for every 100 shares applied for and allocated in the IPO.

Following the successful completion of the offer, the company will list its entire ordinary share capital on the Main Investment Market Segment of the USE. This will meet the requirements of MTN Uganda’s license, which requires its listing by the end-June 2022.

MTN Uganda started operating in 1998. In the first half of 2021, it had 14.9 million subscribers, 8.6 million Mobile Money users, and 4.7 million active data users. MTN Uganda, for me, I am just loving how the fundamentals are really tempting me.

For more; Read all about it here

Uganda has serious potential to grow into a business hub for the region and this is why this MTN IPO is a good way to activate that beast mode for the country and to get them roaring to success.

How can I invest in Uganda shares; As an investor wishing to buy shares through the USE, you must approach your stock broker and express your desire to buy shares of a given listed company.

Here is the whole thread:





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (233)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (363)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (271)
  • June 2019 (250)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (276)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (284)
  • November 2018 (283)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950