Stocks can be a valuable part of your investment portfolio especially if you’re looking for ways of building wealth. Owning stocks in different companies can help you grow your savings, protect your money from inflation and taxes, and maximise income from your investments.
Opened October 11, 2021 , MTN’s Initial Public Offering (IPO) priced at Shs200, is bound to attract several investors hoping to cash in with a minimum investment of Shs100,000.
Last weekm MTN International (Mauritius) Limited floated an Offer for sale of 4.5 billion ordinary shares with a par value of Shs1 each in the share capital of MTN to the general public. The IPO period will close on Monday November 22 2021.
The offer is expected to facilitate the broadest possible shareholder base in Uganda, with Ugandan Retail Investors making Applications for Offer shares of an aggregate minimum value of Shs5 million to be allocated the full number of Offer Shares.
The MTN Uganda listing is part of its compliance of the licensing regime where operators are required to go public with at least 20 per cent of their shares.
Applications from Ugandan Retail and Professional Investors shall be given priority, in the event of oversubscription.
The IPO is in line with the National Broadband policy and national telecom operator licence issued by the Uganda Communications Commission (UCC), to broaden Ugandan shareholding in MTN and provide an opportunity to Ugandan investors, to own a stake in the company and participate in its future growth.
Good investment
The head Department of Finance Faculty of Commerce Makerere University Business School, Dr Rachel Mindra Katorooga told Prosper Magazine in a telephone interview on October 16 that investing in MTN shares is a worthwhile opportunity for both the short and long-term investors in Uganda because MTN is one of the leading telecommunication companies in Uganda with track record of good performance.
“This is a good investment opportunity for both the old and young people, students and those in the higher institution of learning because it is a well-established telecommunication company. It offers good investment returns on equity,” she said.
Dr Mindra said the 260-page MTN prospectus shows that it has been consistently paying dividends to the shareholders in the past years, which is good for stock market investors in Uganda.
“The earlier one starts investing in MTN for the long term, the better for you (him/her) because you get to start growing up with […]