CMA Approves MTN Uganda Prospectus

Kampala.11th October, 2021 Telecommunications
Company, MTN Uganda has been allowed to proceed with an Initial Public Offer (IPO) and issue shares to the general public, following approval of its prospectus by Uganda’s securities regulator, the Capital Markets Authority (CMA).

This marks the fulfillment of part of its National Telecommunication Operator license requirements.

CMA has granted approval to MTN Uganda to offer 4,477,808,848 shares (equivalent to 20% of the total issued shares of the company), at an offer price of UGX 200 per share. The shares are expected to be listed on the Uganda Securities Exchange (USE) to enable secondary trading activity, once the offer window closes.

The company will be seeking to raise UGX 895.56 billion which will be approximately double the cumulative sum raised in Initial Public Offers since the first IPO in Uganda in June 2000

MTN Uganda becomes the 10th domestic company to list its shares on the USE. The exchange last had an IPO in 2018 when Cipla Quality Chemicals (CIPLAQCL) offered 657,179,319 shares (equivalent to 18% of the total issued shares of the company), at an offer price of UGX 256.5 per share.

“We congratulate MTN Uganda upon taking this step up the financing escalator, which now increases the companies financing options. This is a clear sign of the confidence our private sector has in the economy, and in Uganda’s Capital Market,” said Keith Kalyegira, CEO of the CMA.

“The benefits of coming to the market are immense – from capital raising though corporate debt issuance and secondary public offers, to offering an exit avenue to founder shareholders, and the immeasurable public relations value that comes with being a quoted company.

We are glad that MTN Uganda is taking advantage of these opportunities and we urge other Ugandan Enterprises and family owned businesses with ambitious growth plans to consider market based financing to finance their growth or refinance the expensive debt they may have obtained.”

Mr. Kalyegira cautioned prospective institutional and individual investors, to endeavor to understand the salient features of the offer as spelt out in the prospectus, by seeking professional advice from any of the licensed investment advisors or participating brokers, before investing. End.

For media enquiries, please contact:
Samuel Sanya
CMA, acting Manager, Communication and Public Relations.
Tel: 0779546213


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.

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