{"id":4242,"date":"2021-10-12T10:45:04","date_gmt":"2021-10-12T10:45:04","guid":{"rendered":"https:\/\/ugandaupdatenews.com\/?p=4242"},"modified":"2021-10-12T10:51:39","modified_gmt":"2021-10-12T10:51:39","slug":"mixed-feelings-as-mtn-offers-ugandans-the-largest-ipo-on-the-uganda-securities-exchange","status":"publish","type":"post","link":"https:\/\/prowebinhost.com\/anzu\/mixed-feelings-as-mtn-offers-ugandans-the-largest-ipo-on-the-uganda-securities-exchange\/","title":{"rendered":"MIXED FEELINGS AS MTN OFFERS UGANDANS  THE LARGEST IPO ON THE UGANDA SECURITIES EXCHANGE"},"content":{"rendered":"\n<ul class=\"wp-block-list\"><li><strong>Considered &nbsp;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.&nbsp;<\/strong><\/li><li><strong>Uganda government forced the company to list on USE in public interest<\/strong><\/li><li><strong>The offer and listing of MTN Uganda is in line with MTN Group\u2019s localisation plans to drive local ownership in the markets within which MTN operates.&nbsp;<\/strong><\/li><li><strong>It is also in line with the policy objectives of the Government of Uganda as articulated in the National Broadband Policy (2018)and the Uganda Communication (Licensing) Regulations S. I No. 95 of 2019.<\/strong><\/li><\/ul>\n\n\n\n<p>MTN Uganda &nbsp;has announced their &nbsp;intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE) after the government of Uganda obliged the multi billion mobile telephone &nbsp;operator to do so in the public interest of its subscribers and the country\u2019s economy.&nbsp; The listing was a condition that had to be met as government renewed the company\u2019s license .<\/p>\n\n\n\n<p>MTN now says its ready to float shares on the USE&nbsp; after the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20% of its shareholding in MTN Uganda to the public. MTN Group owns 96% of MTN Uganda.<\/p>\n\n\n\n<p>In a statement released by MTN&nbsp; it stated that the listing is in line with the Group\u2019s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda\u2019s NTO licence, which require its listing by end-June 2022.<\/p>\n\n\n\n<p><em>\u201cThe intention to float announcement is a major step towards delivering on our plan to list on the USE,\u201d&nbsp;<\/em>said Charles Mbire, Chairperson of the Board of Directors, MTN Uganda.&nbsp;<em>\u201cIt 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.\u201d<\/em><\/p>\n\n\n\n<p>MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone:&nbsp;<em>\u201cOver 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.\u201d<\/em><\/p>\n\n\n\n<p>But financial experts called for more explanation about the MTN IPO.&#8221; Its not a growth offering . The  company is not raising money to grow its business rather to pay its shareholders . As an entrepreneur I don&#8217;t generally like these kinds of deals  where I &#8216;am a replacement for someone who has already made their money .&#8221; Mr. Livingstone Mukasa a financial advisor stated in a detailed analysis of the offering that went viral on social media .<\/p>\n\n\n\n<p>He also questioned MTN ownership and noted that given its debt ratio  MTN could give as low at 9% in dividends or nothing at all. &#8220;The convoluted nature of MTN ownership makes  me a little bit uncomfortable. Even if I am a minority shareholder I like to know the people I am doing  business with . MTN ownership structure involves four companies (as in one  company owns the other ) before you get to MTN Uganda Ltd. In that case its hard to know who calls the real shorts . this has tremendous implications in business because without knowing who they are , they become hard to influence,&#8221; Mukasa reasoned .<\/p>\n\n\n\n<p>Others said that MTN was not disclosing all the information about its balance sheet  which is key for a transparent company adhering to good corporate governance . &#8221; I am surprised by  declared the net asset value of MTN. Shs. 791bn is only $210m I thought MTN Ug was more valuable . Maybe i am missing  something but  that&#8217;s more or less what they pay in taxes each year !,&#8221; an economists who declined to be named said.<\/p>\n\n\n\n<p>In 1998, MTN Uganda commenced the rollout of its infrastructure and services. It says that they &nbsp;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. \u201cTo facilitate universal access, we continue to contribute 2% of our gross annual revenue to the Uganda Communication Commission.\u201d<\/p>\n\n\n\n<p>Currently &nbsp;MTN covers 97% of the country\u2019s population and have over 6,000km of fibre connectivity to provide the voice and data bandwidth that connects more than 15 million subscribers in Uganda and across the world.<\/p>\n\n\n\n<p>There has been remarkable growth and mobile penetration in Uganda from 0.27% in 1998 to 67% as of March 202.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>MTN Uganda contributes an annual average of approximately UGX700 billion to the government treasury through taxes paid .The company says it has over 1,000 direct employees and employ another 150,000 indirectly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Considered &nbsp;the largest IPO on the Ugandan market and will be delivered primarily through a digital paperless\/ green platform which<\/p>\n","protected":false},"author":1,"featured_media":4246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[24],"tags":[],"class_list":["post-4242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/0f26497be3bb4241942907888228f47b.jpg","jetpack-related-posts":[{"id":4750,"url":"https:\/\/prowebinhost.com\/anzu\/telecom-giant-mtn-uganda-lists-its-shares-on-the-uganda-security-exchange\/","url_meta":{"origin":4242,"position":0},"title":"TELECOM GIANT MTN UGANDA LISTS ITS SHARES ON THE UGANDA SECURITY EXCHANGE","author":"UgandaUpdate","date":"December 7, 2021","format":false,"excerpt":"Telecom giant MTN Uganda Limited has listed \u00a022.4\u00a0billion ordinary shares on the Uganda Securities Exchange (USE), with trading commencing immediately. The listing was approved by the Capital Markets Authority in Uganda and the USE. It follows the successful completion of the largest initial public offering in Uganda\u2019s history, raising a\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/prowebinhost.com\/anzu\/category\/business\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4760,"url":"https:\/\/prowebinhost.com\/anzu\/ict-minister-dr-baryomunsi-officiates-at-mtn-listing-of-shares-on-the-uganda-securities-exchangetells-telecom-companies-lower-internet-charges\/","url_meta":{"origin":4242,"position":1},"title":"ICT MINISTER DR.BARYOMUNSI OFFICIATES AT MTN LISTING OF SHARES ON THE UGANDA SECURITIES  EXCHANGE,TELLS TELECOM COMPANIES  LOWER INTERNET CHARGES","author":"UgandaUpdate","date":"December 8, 2021","format":false,"excerpt":"The ICT and National Guidance Minister , Dr. Chris Baryomunsi has urged telecommunication companies and the Uganda Communications Commission to make Internet services cheaper for Ugandans. Speaking at the listing of the MTN Uganda limited on the Uganda Securities Exchange, Dr. Baryomunsi said the high cost of internet remains a\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/prowebinhost.com\/anzu\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/12\/baryo.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/12\/baryo.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/12\/baryo.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/12\/baryo.jpg 2x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/12\/baryo.jpg 3x"},"classes":[]},{"id":4452,"url":"https:\/\/prowebinhost.com\/anzu\/mtn-boss-vanhelleputte-answers-your-questions-about-the-mtn-ipo\/","url_meta":{"origin":4242,"position":2},"title":"MTN BOSS VANHELLEPUTTE ANSWERS YOUR QUESTIONS ABOUT THE MTN IPO","author":"UgandaUpdate","date":"November 3, 2021","format":false,"excerpt":"MTN Uganda opened its Initial Public Offer that will run until 22nd\u00a0November 2021 4pm. The are three weeks to go and the MTN Uganda Chief Executive Officer,\u00a0WIM VANHELLEPUTTE\u00a0sheds more light on the MTN IPO, responding to some of the pertinent questions from the prospective retail investors. First and foremost, how\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/prowebinhost.com\/anzu\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/11\/mtn-boss.jpg","width":350,"height":200},"classes":[]},{"id":4336,"url":"https:\/\/prowebinhost.com\/anzu\/ugandans-rush-for-mtn-uganda-ipo-shares-as-telecom-company-sets-up-new-m-ipo-subscription-channel\/","url_meta":{"origin":4242,"position":3},"title":"Ugandans rush for MTN Uganda IPO shares as Telecom company sets up new m-IPO subscription channel","author":"UgandaUpdate","date":"October 21, 2021","format":false,"excerpt":"Excited Ugandans have rushed for the MTN Uganda Limited shares as the telecom giants announced the opening of its initial public offer (IPO) of 20% 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\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/prowebinhost.com\/anzu\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/Uganda_Telecommunications_MTN_Uganda_Named_Top_Taxpayer_by_President_Museveni.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/Uganda_Telecommunications_MTN_Uganda_Named_Top_Taxpayer_by_President_Museveni.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/Uganda_Telecommunications_MTN_Uganda_Named_Top_Taxpayer_by_President_Museveni.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/Uganda_Telecommunications_MTN_Uganda_Named_Top_Taxpayer_by_President_Museveni.jpg 2x"},"classes":[]},{"id":5775,"url":"https:\/\/prowebinhost.com\/anzu\/mtn-uganda-breaks-tax-payment-record-with-ugx-800-bn-in-2021%ef%bf%bc\/","url_meta":{"origin":4242,"position":4},"title":"MTN Uganda Breaks tax payment record with UGX 800 Bn in 2021\ufffc","author":"MOSES SSERWANGA","date":"May 28, 2022","format":false,"excerpt":"South African Telecomunications giant, MTN Uganda has announced a record payment of UGX 839 billion\u00a0 as its annual\u00a0 contribution to the achievement of national fiscal and economic development goals of the government of Uganda through taxes in 2021. This revelation was made by the MTN Uganda Chairman Charles Mbire\u00a0 on\u2026","rel":"","context":"In &quot;National Development&quot;","block_context":{"text":"National Development","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-development\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/mbi.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/mbi.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/mbi.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/mbi.jpg 2x"},"classes":[]},{"id":4773,"url":"https:\/\/prowebinhost.com\/anzu\/ugandan-tycoon-charles-mbire-delighted-with-mtn-listing-on-the-uganda-securities-exchange-as-his-net-worth-is-set-to-go-up\/","url_meta":{"origin":4242,"position":5},"title":"UGANDAN TYCOON CHARLES MBIRE DELIGHTED  WITH MTN LISTING ON THE UGANDA SECURITIES EXCHANGE AS HIS NET WORTH IS SET TO GO UP","author":"UgandaUpdate","date":"December 10, 2021","format":false,"excerpt":"Uganda tycoon Charles Magezi Mbire is a happy man following the successful listing of MTN Uganda Ltd on the Uganda stock exchange . Mbire is one of the biggest shareholders in the telecom giant now boasting of a subscribers base of 11 million Ugandans connected on the network . \u201cWe\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/business-national-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/pc0aOV-16q","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/4242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/comments?post=4242"}],"version-history":[{"count":2,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/4242\/revisions"}],"predecessor-version":[{"id":4247,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/4242\/revisions\/4247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media\/4246"}],"wp:attachment":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media?parent=4242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/categories?post=4242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/tags?post=4242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}