HARVEST IS GOOD! MTN Raises Shs535Bn In Shares Listing

MTB Boss Wim Vanhelleputte,

MTB Boss Wim Vanhelleputte,

By Prisca Wanyenya

Telecommunication giants MTN Uganda has announced results of its IPO listing exercise, revealing that Shs,535. 939Bn was raised in sell of shares.

In a press statement released Friday, MTN revealed that the total number of Applicants for Offer Shares was to a tune of 21 394 both as individuals and companies.

The Company also further revealed that all successful Applicants will have their SCD Accounts credited with the number of Offer Shares applied for and allocated to them on 3 December 2021.

“The number of Offer Shares allocated to successful Applicants will include the corresponding number of Incentive Shares that each individual Applicant is entitled to in accordance with the terms and conditions of the Offer detailed in Section 18 of the Prospectus,” reads in part the statement.

However, MTN Uganda also warned that not all applications were accepted and the unsuccessful Applicants will be notified individually and will have their Application funds refunded within 14 days from 3 December 2021.

MTN also informed it’s new shareholders that all the issued shares of MTN Uganda will be listed on the Main Investment Market Segment of the USE (the Listing) on 6th December 2021.

“In accordance with Rule 32(7) of the USE Listing Rules 2021, the USE has granted a waiver for MTN Uganda to list on the basis of the public float attained in the IPO. Trading in MTN Uganda’s shares on the USE will commence on 6 December 2021 at 9.30 a.m,” adds the statement.

The Press Statement further divulged details on the shareholders of MTN Uganda, with MTN International (Mauritius) Limited owning 83.05% shares.

Mauritania is a renowned tax Haven with the island nation having flexible tax laws, and with MTN being registered there, it will exempt the company from paying some taxes in Uganda or pay lower rates in Mauritania in order to avoid high rates in Uganda.

The second biggest shareholder in MTN Uganda is National Social Security Fund1 owning 8.84% shares. During scrutiny of the National Social Security Amendment Bill 2021, NSSF Managing Director was non committal about NSSF intention to buy shares in MTN, but the new development reveals savers with the multi-trillion fund own some shares in MTN Uganda.

Business man Charles Mbire who doubles as Chairman MTN Uganda and the man credited for brockering deal that saw MTN Uganda enter Uganda in 1998 has further cemented his footprints in MTN Uganda and owns 3.99%.

National Social Security Fund through it’s insurance affiliate Sanlam owns0.26% share, while Bank of Uganda Defined Benefits Scheme – Sanlam also expressed interest in MTN by purchasing 0.19% shares.

Kenyans savers have also spread their wings into Uganda’s telecom sector with National Social Security Fund (Kenya) – Sanlam owning 0.18% shares

The other shareholders include; Duet Africa Opportunities Master Fund ICF, FG Hermes Oman LLC, First Rand Bank Limited, Uganda Revenue Authority Staff Benefit Scheme – Sanlam

The Other shareholders have 3.06% shares, and this category includes individuals who purchased for shares through MObile Money.

It should be recalled that the Offer to purchase MTN shares commenced on 11th October 2021 and closed on 22 November 2021, with MTN Uganda putting on market 4 477 808 848 ordinary shares with a par value of Shs 1 each in the issued share capital of the Company at an offer price of Shs200 per share.

MTN Uganda was forced to put up some shares on market as part of the fulfillment of conditions in the license issued issued by Uganda Communication Commission.


Uganda first issued MTN Uganda a National Operator License for the operation of a telecommunications system on 15th April 1998 for a period of twenty years and this license expired on 21 October 2018 but was variously extended to accommodate conclusion of renewal negotiations which have been ongoing for close to 2years.


There was back and forth disagreement between MTN Uganda and Government over the amount of Money to pay for the second license and at one point, President Museveni threatened to send the Telecom packing if they don’t agree with payment of US$100 million, forcing the Telecom to budge thereafter having its license renewed fee for a period of 12 years commencing 1 July 2020.

When the contract of former UCC Executive Director, Godfrey Mutabazi wasn’t renewed, business pundits attributed it to his mishandling negotiations sorrounding MTN license renewal.

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