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MTN, licensed brokers educate masses in Fort Portal on how to participate in the MTN IPO

Hundreds of people turn up for the Fortportal townhall organised by MTN to encourage Ugandans to participate in its IPO (PHOTO /Courtesy)

FORT PORTAL —MTN Uganda together with senior broker representatives from SBG Securities and Crested capital has carried out a massive sensitization campaign in Western Uganda pioneered in Fort Portal City, to create awareness and provide vital information about the MTN offer of shares and the stock market to communities in the area.

This is in an effort to arm the public with requisite information to enable them participate in the ongoing IPO.

An IPO is the process of offering shares of a private corporation to the public for the first time.

The Fort Portal town hall is part of a nationwide awareness tour which feeds into MTN’s broader “Uganda is Home” campaign through which the telecom is seeking to further deepen its roots across the country by offering Ugandans ownership in one of the country’s largest companies.

MTN and the brokers will hold over 300 meetings across all the districts countrywide to sensitize the public about the opportunity to own shares in the company.

Similar engagements have been held in Jinja, Mityana, Lyantonde, Apac, Lugazi and Mukono among others.
The initiative to take the IPO closer to the people follows MTN’s announcement of the intention to list 20% (4.5 billion shares) of its ordinary shares and the subsequent opening of the offer on Monday 11 October 2021, after approvals by the Capital Markets Authority of Uganda. The offer will close on Monday 22 November 2021.

MTN is offering shares at UGX 200 per share with a minimum order quantity of 500 shares which means Ugandans can become shareholders in MTN Uganda with an investment of as low as UGX 100,000.

This affordable offer of shares by MTN coupled with the incentives is aimed at democratizing the capital market and making it as easy as possible to apply for shares through MTN MoMo.

Speaking at the town hall meeting held at Night Rose Hotel in Fort Portal today, Ibrahim Senyonga, MTN General Manager Enterprise Business Unit (EBU) said that MTN is offering shares to the public with particular focus on Ugandan retail investors.

“The decision to offer shares to the public is part of MTN’s commitment to drive shared growth within the markets it operates. In that spirit, we are here to educate and give Ugandans an opportunity to own part of the leading telecommunications and mobile money operator. The MTN offer for shares is primarily targeting Ugandan individual investors, giving every Ugandan a chance to own a stake in MTN Uganda for as low as UGX100,000 for 500 shares. This means that each share costs only UGX200. MTN has also made the process of application (for shares) easy and affordable through MTN MoMo” Senyonga said.

Senyonga emphasized that this offer of MTN Shares is open to all Ugandans and incentives have been offered to encourage them to apply, “All Ugandan individuals applying for MTN Shares through MTN MoMo (via USSD or MyMTN app) will receive an incentive of 10 bonus shares for every 100 shares applied for. Individuals applying for shares using other methods like Uganda Securities Exchange (USE) portal https://scd.use.or.ug/ or paper applications will also get an incentive of 5 bonus shares for every 100 shares they apply. In case of over subscription of the MTN IPO, Ugandan individuals will be considered first.”

The MTN IPO is the first ever m-IPO in the region, allowing individual retail investors to apply for the shares through MTN MoMo. MTN customers can apply for shares at their convenience by dialing *165*65# on their phone, first to open their SCD accounts and then apply for the MTN shares. MTN customers with smartphones can also apply through the MyMTN app. Applying for MTN Shares is free.

Persons interested in applying for MTN shares can get further assistance from MTN Service Centres, Stanbic Bank branches, and the licensed brokers including SBG Securities, Crested Capital, and Dyer & Blair.

The MTN IPO comes at a time MTN is marking 23 years in Uganda. In 2020, MTN Uganda was issued a new 12-year license by the Uganda Communications Commission. The company has also committed to invest about UGX1 trillion to augment its network and customer experience over the coming years.

This further confirms MTN’s resolve to continue to be a key player in enabling Uganda’s future growth for many more years to come.

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