MTN gets ‘no objection’ to market its IPO in Kenya

The Capital Markets Authority of Kenya has given MTN a ‘no objection’ to market its initial public offering (IPO) in the country.

The move will, among others, seek to increase participation of Kenyans in the ongoing sale of MTN shares to both institutional and retail investors in East Africa. 

The marketing in Kenya will be spearheaded by SBG Securities and Dyer and Blair, both of which are licensed market intermediaries in Kenya.

SBG Securities is the transaction advisor and lead sponsoring broker for the MTN IPO. It will collaborate with SBG Securities Kenya to market the IPO in the country.

MTN has availed 4.4 billion ordinary shares or 20 percent of its stake at Shs200 per share with each prospective shareholder expected to apply for at least 500 shares, which, if fully allocated, results in a minimum investment of Shs100,000.

The IPO is open to both institutional and retail investors within East Africa with each investor required to open a Securities Central Depository with the Uganda Securities Exchange.

Under the National Broadband Policy, telecom companies, among which include MTN, are required to have listed on the USE by at least June 2020.

Other telecoms, which include Airtel, have not indicated when they will be going public.

Mr Wim Vanhelleputte, the MTN chief executive, said the decision to float shares is part of the telecom’s localisation agenda that seeks to align priority services to Uganda’s development agenda.