Q&A With MTN Uganda CEO, Wim Vanhelleputte, Answers MTN IPO Pertinent Questions

Q&A With MTN Uganda CEO, Wim Vanhelleputte, Answers MTN IPO Pertinent Questions

Telecommunication firm; MTN Uganda on October 11th, 2021 formally announced the opening of its IPO of 20% of its shares , following approvals by the Capital Markets Authority (CMA) of Uganda and the Uganda Securities Exchange (USE). The telco’s Mr. Wim Vanhelleputte at the announcement called on the public to buy shares in the company at a value of UGX200 so they can be part of the telco’s activities.

Here, Mr. Vanhelleputte sheds more light on the MTN IPO, responding to some of the pertinent questions from the prospective retail investors.

How would you describe MTN Uganda as a company?

MTN Uganda is a subsidiary of the MTN Group, a leading emerging market operator with a clear vision to lead digital solutions for Africa’s progress, through its 277 million customers in 20 countries in Africa and the Middle East.

That said, MTN Uganda is a leading telecoms company in Uganda with the primary objective of carrying on the business of a national operator of a telecommunications network, pursuant to the NTO license granted by the UCC.

MTN recently announced the opening of its initial public offer (IPO). Briefly share with us details of the offer?

The structure of the IPO is a secondary offer of 20% of the issued share capital of MTN Uganda Limited, with the selling shareholder being MTN Group. The total number of shares on offer amounts to 4.5 billion shares, at an offer price of UGX200. The minimum number of shares that can be applied for is 500 shares. Therefore, the minimum amount required to participate as an investor in this IPO is UGX100,000. We believe this is a reasonable minimum amount to attract broad retail investor participation.

What exactly is MTN offering to the public in the IPO?

Among our offerings are network services, digital and financial technology services, interconnect and roaming, sale of mobile devices, and MTN Mobile Money (yes! mobile money is included in the listing). The MTN Mobile Money services are conducted through our subsidiary MTN Mobile money limited Uganda that is 100% owned by MTN Uganda.

MTN has a presence in all the 134 districts of Uganda. Our services are delivered through a network of 119,077 Mobile Money agents, 200 service stores, and 13 main distributors. At the end of September 2021, MTN Uganda had 15 million customers, over 8.6 million MoMo users, and 4.7 million active data users.

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