MTN Uganda’s IPO fails to meet its fundraising target

MTN Uganda's IPO fails to meet its fundraising target

KAMPALA, Dec 3 (Reuters) – Uganda’s biggest telecoms operator MTN said on Friday it has secured just 60% of its target amount from an initial public offering of a 20% stake, raising 536 billion shillings ($150 million).

The company allocated 2.9 billion shares to investors through the transaction, which was billed as the East African nation’s biggest IPO.

A total of 4.5 billion shares were on offer. MTN Uganda did not provide more details on why some were not allocated.

The shares will be listed on the Uganda Stock Exchange and start trading on Monday morning, the company said.

The operator, which has 15 million subscribers and also offers mobile money financial services, is a unit of South Africa’s MTN MTNJ.J

($1 = 3,563.6400 Ugandan shillings)

(Reporting by Elias Biryabarema; Writing by Duncan Miriri; Editing by Alison Williams)

(( duncan.miriri@thomsonreuters.com ; Tel: +254 20 4991239; Reuters Messaging: duncan.miriri.thomsonreuters.com@reuters.net )) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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