Statements Made at the MTN Uganda Limited Intention to Float Event

On 5 October 2021, MTN Uganda Limited (MTN, the Company) held an event in which MTN announced its intention to proceed with an initial public offer (IPO) and subsequently list the Company on the on the Uganda Securities Exchange (USE). This announcement followed the approval of the IPO prospectus by the Capital Markets Authority of Uganda (CMA) and the USE.

In his remarks during the event, Mr. Keith Kalyegira, the Chief Executive Officer of CMA, commented on the direct impact of the IPO on Uganda’s capital markets. The CMA wishes to inform the public that his comments were referring to the market capitalisation of the USE, where he noted that the proposed IPO would increase the value of the exchange’s domestic market capitalisation. According to the recent USE’s daily trading reports, the domestic market capitalization is UGX 4.3 trillion.

Mr. Kalyegira’s comment was in reference to the approximate size of the company not on the size of the offer. Information on the IPO value, number of shares and share price will be contained in the Prospectus to be published by MTN in relation to the IPO as soon as it is registered with the Registrar of Companies and subsequently launched.

For media enquiries, please contact:
Samuel Sanya
For Communication and Public Relations Manager Tel: 0779546213 Email: ssanya@cmauganda.co.ug

NOTES TO THE EDITOR

CMA was established in 1996 by the CMA Act Cap 84. The Authority has several functions under this Act which include approval of prospectuses or offer documents; development of the capital markets; protection of investors, management of the investor compensation fund, among others.

The Act was amended in 2011 to provide for issuance of securities to the public and ensure that CMA becomes a signatory to Appendix A of the International Organization of Securities Commission’s Multilateral Memorandum of Understanding. In May 2016, the H. E the President of the Republic of Uganda assented to the CMA Amendment Act 2016, and it took effect on 20 May 2016.

This amendment aimed to improve governance and operational aspects of the Authority and of those regulated under this Act. Section 101 of the CMA Act gives the Authority powers to develop Regulations which give effect to the Act.

Granting licenses and approvals is one of the duties of the Authority as prescribed under Section 5 (2) (c & d). The Licensing and Approvals Regulations provide for what is required for entry into the market, what is required to remain compliant while conducting business in the capital markets, as well as the fines and penalties in case a player contravenes any of the provisions of the Act or its Regulations.