MTN falls short of target, raising only R2.4bn in initial public offering of Ugandan unit

accreditation
0:00
play article
Subscribers can listen to this article
The MTN Group said the initial public offering of its Ugandan unit raised 535.94 billion shillings (about R2.4 billion), less than two-thirds of its target. (Photo by Gallo Images/Papi Morake)
The MTN Group said the initial public offering of its Ugandan unit raised 535.94 billion shillings (about R2.4 billion), less than two-thirds of its target. (Photo by Gallo Images/Papi Morake)

The MTN Group said the initial public offering of its Ugandan unit raised 535.94 billion shillings (about R2.4 billion), less than two-thirds of its target.

At least 2.9 billion shares were allotted out of the 4.5 billion shares that were offered, Kampala-based MTN Uganda said in a statement, without providing reasons for the undersubscription.

The stake which Africa’s largest wireless carrier has in the unit was cut to 83.05% from 96% following the allotment. It will list on the Uganda Securities Exchange on Monday. The South African-based group had offered to cut its stake by 20% in line with regulatory requirements.

Uganda and Kenya’s national social security funds, Duet Africa Opportunities Master Fund IC, EFG Hermes Oman LLC, First Rand Bank and local pension funds for the Ugandan central bank and tax authority were among the top buyers of stakes in MTN Uganda, according to the statement.

The IPO, the first in the country in more than three years, is also the biggest since Umeme raised about $66 million in 2012, according to data compiled by Bloomberg.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.69
-1.4%
Rand - Pound
21.03
-1.5%
Rand - Euro
17.49
-1.4%
Rand - Aus dollar
10.97
-0.8%
Rand - Yen
0.14
-1.4%
Gold
1,787.61
-0.6%
Silver
22.50
-1.2%
Palladium
2,338.75
-1.6%
Platinum
1,002.50
-2.3%
Brent Crude
89.34
-0.7%
Top 40
67,021
-0.1%
All Share
73,455
-0.1%
Resource 10
74,081
-1.4%
Industrial 25
90,993
+0.6%
Financial 15
15,218
+1.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot