Ugandan tycoon Charles Mbire’s MTN Uganda share sale oversubscribed by nearly 100 percent

Oluwatosin Racheal Alabi -

Key points:

  • MTN Uganda’s recent share sale was oversubscribed by nearly 100 percent, with applications for 3 billion shares against 1.6 billion available.
  • The oversubscribed share offer resulted in approximately 19,600 Ugandan investors acquiring stakes in the company.
  • MTN Uganda is committed to achieving 90 percent geographical coverage by 2025, emphasizing investments in network infrastructure and fintech innovations.

MTN Uganda, under the leadership of Ugandan tycoon Charles Mbire, saw its recent sale of shares left over from the 2021 IPO oversubscribed by nearly 100 percent, as confirmed by the company’s executives on June 13. The telecom giant received applications for 3 billion shares against the 1.6 billion shares available, representing 7.03 percent of the company’s total equity.

MTN Uganda’s 2021 IPO aimed to sell 20 percent of its shares to expand local ownership and meet regulatory requirements, but it was largely undersubscribed. In response, the company announced a secondary sale of the remaining shares on the Uganda Securities Exchange last month.

The share sale took place between May 27 and June 10, but MTN did not disclose the financial results. The company plans to issue a detailed statement on the offer results on or before June 20.

Impact on local community and company achievement

MTN Uganda, which serves 20 million subscribers and offers mobile money services, has a major impact on the local community. Mbire, the company’s chairman, reflected on MTN Uganda’s journey since its inception in 1998, highlighting its role in transforming telecommunications, improving digital access, driving financial inclusion, and enhancing social development in Uganda.

Last year, MTN Uganda celebrated its 25th anniversary. Mbire noted the company’s significant achievements, including expanding network coverage, introducing mobile financial services, and launching commercial 5G services in Uganda.

“When I look back over this time, I am proud of the remarkable milestones that we have achieved together. From expanding our network coverage, to introducing groundbreaking mobile financial services that have transformed lives and businesses, to becoming the first to launch commercial 5G services in Uganda, MTN Uganda has offered innovative and reliable solutions that cater to the needs of Ugandans” he said.

MTN Uganda’s commitment to future growth

Sylvia Mulinge, MTN Uganda’s CEO, reaffirmed the company’s commitment to projects that benefit the people of Uganda. She highlighted MTN’s efforts in corporate social investments and initiatives for digital and financial inclusion, emphasizing the company’s role in Uganda’s socio-economic development.

Mulinge also denied false reports about MTN Mobile Money separating from the main business, urging shareholders to trust the company’s management. In addition to the oversubscription, the recent share offer resulted in approximately 19,600 Ugandan investors owning a stake in the company.

Mbire expressed pride in facilitating the broadest possible shareholder base in Uganda and contributing to the development of the country’s equity capital markets. “Localization is a key objective for us as we prioritise creating shared value, broadening local participation and ownership in MTN Uganda, and deepening the Uganda capital markets,” Mbire said.

MTN Uganda continues to focus on important investments in network infrastructure, customer acquisition, and fintech innovations. The company is committed to achieving 90 percent geographical coverage across Uganda by 2025, in accordance with its National Telecom Operating License obligations.