Telecommunications group MTN Uganda plans to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE) following approval from the Capital Markets Authority (CMA) and USE for MTN Group to sell 20% of its shareholding in MTN Uganda to the public.

The listing is in line with the strategic priority and localisation plans of the MTN Group, which owns 96% of MTN Uganda, as well as with the provisions of MTN Uganda’s national telecommunications operator licence, which requires its listing by the end of June 2022.

“The intention to float announcement is a major step towards delivering on our plan to list on the USE. It 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,” said MTN Uganda chairperson Charles Mbire.

The move will result in potentially 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.

“Over 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,” added MTN Group Southern and East Africa VP Yolanda Cuba.

MTN provides affordable access through a widespread voice and data network, investing UGX3.5-trillion in infrastructure development across the 134 districts of Uganda, both rural and urban and contributes 2% of its gross yearly revenue to the Uganda Communication Commission.

MTN Uganda contributes a yearly average of UGX700-billion to the government treasury through taxes.

“The growth in mobile penetration in Uganda from 0.27% in 1998 to 67% as of March 2021 is proof of MTN’s contribution to democratise mobile telephony.”

MTN Uganda has prioritised the expansion of rural coverage and currently covers 97% of the country’s population, boosted by over 6 000 km of fibre connectivity to provide the voice and data bandwidth that connects more than 15-million subscribers.

“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,” the group commented.