MTN Uganda is offering bonus shares to Kenyan Investors keen to buy into buying a 20% in its Initial Public Offer (IPO) worth Ksh 27.6 billion ( $250 Million) which opened 11 th October. It closes on November 22.
This is after the Capital Markets Authority (CMA) granted the telco permission for its IPO to be marketed in Kenya, allowing the marketing of the shares to both Professional Investors and Retail Investors.
“Kenya’s Capital Markets Authority (CMA) has provided its ‘no objection’ for the MTN Uganda Initial Public Offering (IPO) to be marketed in Kenya, allowing the marketing of the shares to both professional investors and retail investors following the opening of the offer in Uganda on 11th October 2021,” the firm said in a statement Thursday.
The marketing in Kenya is spearheaded by SBG Securities and Dyer and Blair. SBG Securities Uganda is the Transaction Advisor and Lead Sponsoring Broker for the MTN Uganda IPO and will be collaborating with SBG Securities Limited (Kenya) to market the IPO in Kenya.
The MTN Uganda IPO offers for sale 4.4 billion ordinary shares, accounting for a 20% stake of the company, at a price of Ksh. 6.28 (UGX 200.00) per share.
Prospective shareholders must apply for at least 500 shares which if fully allocated, result in a minimum investment of Ksh. 3,137.94 (UGX 100,000) per shareholder.
“Kenyan investors will require a valid identification national ID or passport to open a Securities Central Depository (SCD) account at the Uganda Securities Exchange (USE) to apply for the MTN Uganda IPO,” said MTN Uganda.
“All East Africans who apply for shares, will receive 5 bonus shares for every 100 shares they are allocated,” said MTN.
After the successful completion of the offer, MTN Uganda will list on the Main Investment Market segment of Uganda Securities Exchange becoming the 10th domestic company to be listed.