As part of MTN Uganda’s 12- year license renewal requirements by the regulator Uganda Communications Commission (UCC), the telecom giant is expected to list a 20 percent equity stake on Uganda Securities Exchange (USE) opening a window for East African investors to buy shares.
By the end of June 2022 will have listed 20% of their shares on the Uganda Securities Exchange (USE) and for investors any excitement for any company listing lies in its numbers and financials. MTN Uganda raked in UGX 1.9 trillion shillings last year which is about 10% of Uganda’s annual budget as a country. But MTN is not per se raising money with this initial public offer as it was required by law and this will work for the company in the future.
“Technology moves very quickly with things like 5G, I hear some places in China they are already looking at things like 8G, doing some research with that advancement of technology, the market changes very quickly,” according to Stephen Kaboyo Managing Director, Alpha Capital while speaking to NTV. “There will be an opportunity of course but some of the money that could be raised in this IPO could go to that effort,” he said.
The question remains as to whether MTN shares once listed and the initial excitement has passed, its share will be actively listed to make a difference with the current trend of publicly listed companies. Nevertheless, the initial proposition should be luring to investors.
An investor will always look at two things, one is capital growth (capital gain) the other one is dividends. Capital growth is mainly driven by the strength of the company which excites investors since shares will appreciate and when it comes to dividends everyone whats to participate in this revenue growth trajectory story.
Soon expected from MTN is the prospectus that will give prospective investors an interface with the company and its support teams ahead of the listing within the next 10 months.