“I am very happy with the localization strategy of giving shares to Ugandans.” Museveni said.
MTN announced on Tuesday that they have reached on the decision to float 20% of the issued shares on Uganda Stock Exchange at IPO.
The president of the Republic of Uganda, Yoweri Kaguta Museveni, has praised the decision of MTN Uganda that allows local investors to own shares in MTN Uganda Limited after the company announced its plan to list 20% of its shares on Uganda Stock Exchange.
Museveni said this after meeting the leadership of MTN Group led by MTN chairman Mcebisi Jonas on Thursday.
Museveni who has of recent years been critical about investors who do not partner with local investors said that Ugandans who have just woken up to work towards a commercial economy will now utilize this chance and invest in a huge company like MTN.
“It is very important. Ugandans (who have started waking up from sleep/ kulambaala) will now be partners in all the activities of MTN” Added Museveni
MTN decision to float 20% of its shares comes after the acquisition of a new National Operator License which obligates telecom companies to sell at least 20% of their shares to Ugandans via Uganda Stock Exchange.
“It is in great honor, I announce MTN’S intention to float 20% of its issued shares through an initial public offer -IPO of existing ordinary shares, a process which has already been approved by Capital Markets Authority of Uganda” Charles Mbiire, Chairman MTN Uganda said in a statement on Tuesday.
Museveni also added that the company also briefed him about the plans to invest $300M (UGX 1.07 Trillion) to Uganda’s telecommunication sector in the next 3 years.
Once listed on stock exchange, Ugandans will all have a chance to either own shares in the company, thus sharing on the profits of the company in form of dividends.
However worries are that most Ugandans are ignorant about the stocks markets which will make a few individuals benefit.
Uganda Securities Exchange (USE) and Capital Markets Authority have been carrying out various financial literacy lessons both online and offline to help educate the masses on how they can invest in shares in the companies that are already listed on the Stock Exchange.
MTN is yet to announce when it will conduct the Initial Public Offering the number of shares that will be issued.