Thread by @MwangoCapital

We are underway with @mtnug CEO @wimMTNUG and @stanbicug Head of Investment Banking Paul Muganwa

#MwangoSpaces #MTNIPO

twitter.com/i/spaces/1ynJO…

What is an IPO?

A company takes its ordinary shares from private ownership to public ownership.

@mtnug IPO offer opened on 11 November and will close on 22 November 2021

#MwangoSpaces #MTNIPO

About @mtnug:

-Incorporated in 1988
-Leading telecoms company in Uganda
-14.9 million subscribers
-59.1% customer market share

#MwangoSpaces #MTNIPO

Market share:

Telecommunication: 55% @mtnug, 45% @Airtel_Ug
Mobile money: 60% @mtnug, 40% @Airtel_Ug

#MwangoSpaces #MTNIPO

Bird's eye view of Uganda:

-Diversified economy [Manufacturing, Services, Agriculture]
-Currency Appreciation: 1.5% to 2.5%
-FDI flows into the country
-Demographics: young population

#MwangoSpaces #MTNIPO

Key players:

*SBG Securities and @DyerandBlair are the authorized cross-border agents of the #MTNIPO

#MwangoCapital #MTNIPO

Current shareholding structure:

MTN International: 96%
Charles Mbire: 4%

Note that it is MTN International (with 96% stake) that is ceding 20% stake to the public.

#MwangoSpaces #MTNIPO

@UmemeLtd is cross-listed on @NSE_PLC. Is a cross listing to Kenya an option for @mtnug ?

"No, it is not yet on our road map. We are starting with this 20% on the USE. Let's see how it goes"-@wimMTNUG

#MwangoSpaces #MTNIPO

Dividend policy:

-At least 60% payout
-Dividends paid 3x a year
-New shareholders to get any final dividend declared

#MwangoSpaces #MTNIPO

Uganda Securities Exchange [@USEUganda]:

-Active 25,000-30,000 SCD accounts
-@mtnug will be the largest listing on @USEUganda and also the tenth domestic company on the exchange.

#MwangoSpaces #MTNIPO

How are trading fees/commissions at @USEUganda?

-vary with quantity of trades
-generally 1% or lower

#MwangoSpaces #MTNIPO