MTN Uganda gets nod to market stake sale in Kenya
An MTN Uganda internet facility exhibitor attends to a client at an exhibition.
The Capital Markets Authority (CMA) has given MTN Uganda the nod to market its shares in Kenya after the company opened its Sh28 billion Initial Public Offer (IPO) in Uganda last month.
The ‘no objection’ from the regulator gives both retail and professional Kenyan investors a chance to buy the company’s stock that is being offered at Sh6.3 apiece (Ush200) with a minimum buy offer of 500 shares.
The IPO opened in Uganda on October 11 with the firm’s parent, South Africa’s MTN Group, aiming to sell 4.47 billion shares which will reduce its stake in the company by 20 per cent to 76 per cent from 96 per cent.
The sale of the stake by MTN Group comes after Uganda Communications Commission (UCC) in 2019 directed all foreign-owned telcos in the country to reserve at least 20 per cent of their shares to locals and East Africans by end of this year to stimulate local ownership of the telecoms industry.
The offer closes on November 22 ahead of the shares listing on the Uganda Securities Exchange (USE) on December 6 with trading also open to investors from Tanzania, Rwanda, Burundi and South Sudan.
SBG Securities Uganda Limited is the transaction advisor and lead sponsoring broker for the MTN Uganda IPO, while SBG Securities, and Dyer and Blair will lead the marketing of the stock in Kenya.
