MTN IPO: It’s risky to rely on speculators

MTN IPO: It's risky to rely on speculators

Listing. MTN on Monday announced the decision to float 20 per cent of its shares through an initial public offering before subsquently listing on the Uganda Stock Exchange.

The decision comes as a party of the requirement of the law which demands that telcoms must list on the Uganda Securities Exchange.

MTN is expected to have massive impact on the USE with projections showing that it will double its size from Shs4.2 trillion to Shs8 trillion

Be sure, it will be long before Uganda witnesses another initial public offering (IPO) such as MTN.

No doubt, we have not seen anything like it before. Perhaps, the closest we have seen was Safaricom, but it was possibly thousands of kilometres away for many of us to understand the oomph.

Admittedly, it is crunch time, especially for equity markets. They have been yearning for such an IPO and it could not have arrived at a better time than now.

But what does it present for investors, in a country with limited opportunities and an equity market that is struggling to mature in a see on needy businesses.

First and foremost, as an investor or even a bystander, it is risky to believe that someone will make the best decision for you.

Take matters in your hands. You will be amazed how quickly you will arrive at a less crowed and biased decision.

It is risky to give in to prejudice of invisible social media analysts, whose authority you cannot qualify or quantify.

You might already have seen a crowd of half truth analyses flying around.Many of which are originated by pseudo analysts whose claim to fame is having a phone or a computer and the courage to write up something.Much of the information that has been shared contains half-truths and twisted lines that are outright lies written to drive a certain narrative..For instance, there has been a rumour that the Mobile Money business is not part of what is being floated.However, this is a fact that has already been put on paper for anyone to see.The prospectus is a public document that has been made available with the purpose of informing investor decisions, based on an analysed position of the telecom in all aspects.In the 260-page prospectus realised on Monday, MTN explicitly highlights that on November 27, 2020, it established a subsidiary – Mobile Money Company- to conduct its business of a payment systems operator and […]

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