Anne Juuko, the CEO Stanbic Bank Uganda addressing the press during the MTN IPO opening announcement at the Kampala Serena Hotel. (FILE PHOTO) MTN Uganda on Monday this week opened its initial public offer (IPO) of 20% of its shares —an opportunity for the public to apply for a stake in the company, following approvals by the Capital Markets Authority of Uganda (CMA) and the Uganda Securities Exchange (USE).
Stanbic Bank is MTN’s Transactional advisor for MTN’s Initial Public Offer. In this interview, Ms. Anne Juuko, the CEO of Stanbic Bank sheds light on MTN’s IPO for prospective investors.
From your expert opinion, would you consider the MTN IPO a good investment and why?
This is definitely a worthwhile investment when considering the macro-economic and industry environment. There is a low mobile penetration rate in Uganda of just over 60%, high population growth rates — with the adult population growth rates estimated at c. 4% p.a., and a GDP growth rate of +/- 5% in the medium term. This creates a very conducive environment for the growth of the mobile telecommunications industry. Not to mention, the opportunity for growth within Data and Fintech service segments.
Furthermore, MTN holds a strong market positioning, with a market share in excess of 50%. All key indicators point to the strong growth of the company.
Is the MTN offer incentivized to drive participation?
The offer provides for Incentive shares to be allotted to Ugandan Retail. Retail investors subscribing using the mIPO portal and MTN mobile money are eligible to receive 10 incentive shares for every 100 shares subscribed for and allocated in the IPO, whist retail investors using the eIPO and/or other subscription and payment channels will be eligible to receive 5 incentive shares for every 100 shares subscribed for allocated.
These incentives have been provided to further drive our localization agenda and achieve broad-based Ugandan ownership of the company. Further details on the offer can be found in the Prospectus.
What are the benefits of owning these shares?
There are many benefits associated with owning shares for example, when you buy shares of a company you become a part-owner of that company and therefore will be entitled to get a share of the profits of the company which comes in form of dividends. You can also earn capital gains. This refers to the increase in the value of your investment in shares.
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