MTN raises less than hoped for in Uganda IPO

MTN Group said the initial public offering of its Ugandan unit raised USh535.9-billion (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, EFG Hermes Oman, FirstRand 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 US$66-million in 2012.  — Fred Ojambo, (c) 2021 Bloomberg LP

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