Uganda Telcos
There is looming IPO in Uganda for MTN Uganda shares as the government negotiated through Uganda Communications Commission (UCC) that all Telcos sell 20% of their shares to EAC community members. This means that anyone outside the EAC community will not be legible to buy the shares. The six members of the EAC are Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.
MTN Group PE Ratio currently stands at 13.52 which indicates that the shares are undervalued and investors would still make a kill from buying the shares.
The sale of a 20% equity stake in MTN Uganda, the East African nation’s biggest telecoms operator, will be restricted to citizens of the East African Community trading bloc.
The government of Uganda is forcing all its telecom operators, including MTN Uganda and the local unit of India’s Bharti Airtel,, to list a fifth of their shares on the local bourse to allow locals to benefit from the sector’s profits.
“The shares are restricted to Ugandans, and also citizens from the East African Community (EAC),” Ibrahim Bbosa, spokesman for the Uganda Communications Commission, the regulator, stated.
In my opinion this is a great move that will help East Africans to share part of the benefits from this corporations which make a lot of money from us.
Stay tuned to get more information about the IPO as the companies are supposed to hold an IPO within 2 years.
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