MTN Uganda has announced its intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE). This follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20 percent of its stake in MTN Uganda to the public. MTN Group owns 96 percent of MTN Uganda.
The listing is in line with the group's strategy to create shared value, partly by enabling broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda’s NTO licence, which require its listing by end-June 2022.
Charles Mbire, chairperson of the board of directors of MTN Uganda, said the announcement is a major step towards fulfilling its plan to list on the USE. MTN Group VP for Southern and East Africa, Yolanda Cuba, said that over the last 23 years, people in Uganda have "embraced" MTN and given it "the legitimacy" to operate throughout this country. MTN Uganda has prioritised the expansion of rural coverage and now covers 97 percent of the population and nas over 6,000km of fibre connectivity to provide the voice and data bandwidth for more than 15 million subscribers.
Financial inclusion has nearly doubled from 28 percent in 2009 when MoMo was introduced to Uganda to 58 percent as of 2018. MTN Uganda contributes an annual average of approximately UGX 700 billion to the government treasury through taxes.
