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MTN Uganda IPO..Whats cutting over there??
Rank: Elder Joined: 6/23/2009 Posts: 14,322 Location: nairobi
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Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,322 Location: nairobi
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750 bonus shares.. tomorrow the rubber meets the road COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 3/16/2019 Posts: 313
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obiero wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions
Why MTN Uganda’s IPO has failed to beat its targetExternal Factors- This IPO was forced by the govt MTN was initially reluctant and only did it as licensing renewal requirement. - The Uganda bourse is small with only 42,000 investors, and its performance is also lacklustre - Covid 19 pandemic market aftershocks (job cuts, reduced incomes etc) - Negative and biased social media commentaries Internal Factors- The IPO campaign by MTN was also lacklustre and not visible enough to excite the masses - The share price was perceived to be too high and it was not clear to the public whether Mobile money will be part of the deal Lets wait to see how the market will react
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Rank: Chief Joined: 1/3/2007 Posts: 18,380 Location: Nairobi
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Ericsson wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? Top Ten Shareholders: Following the Offer and immediately prior to the Listing, the top ten shareholders of MTN Uganda are as follows: Shareholder Number of Issued Shares Percentage ShareholdingMTN International (Mauritius) Limited 18 594 809 664 83.05% National Social Security Fund 1 980 000 000 8.84% Charles Mbire 892 230 775 3.99% National Social Security Fund – Sanlam 58 590 000 0.26% Bank of Uganda Defined Benefits Scheme – Sanlam 42 000 000 0.19% National Social Security Fund (Kenya) – Sanlam 39 180 225 0.18% Duet Africa Opportunities Master Fund IC 30 000 000 0.13% EFG Hermes Oman LLC 26 855 500 0.12% First Rand Bank Limited 22 000 000 0.10% Uganda Revenue Authority Staff Benefit Scheme – Sanlam 18 900 000 0.08% Other shareholders 684 478 075 3.06% Total 22 389 044 239 100%
Lack of confidence in the company. 50% of shares on offer bought by NSSF UG. MTN will be 50% of the USE's market cap. Perhaps it was too much for Ugandans to chew on given the size and past poorly performing issues/firms. At one time, not long after the IPO, Safaricom shares were trading at 50% of the IPO price! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,380 Location: Nairobi
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kmucheke wrote:obiero wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions
Why MTN Uganda’s IPO has failed to beat its targetExternal Factors- This IPO was forced by the govt MTN was initially reluctant and only did it as licensing renewal requirement. - The Uganda bourse is small with only 42,000 investors, and its performance is also lacklustre - Covid 19 pandemic market aftershocks (job cuts, reduced incomes etc) - Negative and biased social media commentaries Internal Factors- The IPO campaign by MTN was also lacklustre and not visible enough to excite the masses - The share price was perceived to be too high and it was not clear to the public whether Mobile money will be part of the deal Lets wait to see how the market will react It could be another Safaricom, soon after listing, and if so then time for Kenyans to jump in at less than 6/-. It should cross-list on the NSE to attract Kenyans. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 3/16/2019 Posts: 313
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VituVingiSana wrote:kmucheke wrote:obiero wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions
Why MTN Uganda’s IPO has failed to beat its targetExternal Factors- This IPO was forced by the govt MTN was initially reluctant and only did it as licensing renewal requirement. - The Uganda bourse is small with only 42,000 investors, and its performance is also lacklustre - Covid 19 pandemic market aftershocks (job cuts, reduced incomes etc) - Negative and biased social media commentaries Internal Factors- The IPO campaign by MTN was also lacklustre and not visible enough to excite the masses - The share price was perceived to be too high and it was not clear to the public whether Mobile money will be part of the deal Lets wait to see how the market will react It could be another Safaricom, soon after listing, and if so then time for Kenyans to jump in at less than 6/-. It should cross-list on the NSE to attract Kenyans. Stanbic Ug IPO price was Ugx. 70/= and was oversubscribed (200%). Current share price around Ugx. 26/=. A law was passed last year requiring all telcos in Ug to spin off mobile money as separate legal entities so that they come under Bank of Uganda regulations. So it is not clear who actually owns the mobile money entity since this is contributes to over 40% of revenue and has potential growth. I agree cross listing will give the stock more visibility and liquidity.
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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kmucheke wrote:VituVingiSana wrote:kmucheke wrote:obiero wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions
Why MTN Uganda’s IPO has failed to beat its targetExternal Factors- This IPO was forced by the govt MTN was initially reluctant and only did it as licensing renewal requirement. - The Uganda bourse is small with only 42,000 investors, and its performance is also lacklustre - Covid 19 pandemic market aftershocks (job cuts, reduced incomes etc) - Negative and biased social media commentaries Internal Factors- The IPO campaign by MTN was also lacklustre and not visible enough to excite the masses - The share price was perceived to be too high and it was not clear to the public whether Mobile money will be part of the deal Lets wait to see how the market will react It could be another Safaricom, soon after listing, and if so then time for Kenyans to jump in at less than 6/-. It should cross-list on the NSE to attract Kenyans. Stanbic Ug IPO price was Ugx. 70/= and was oversubscribed (200%). Current share price around Ugx. 26/=. A law was passed last year requiring all telcos in Ug to spin off mobile money as separate legal entities so that they come under Bank of Uganda regulations. So it is not clear who actually owns the mobile money entity since this is contributes to over 40% of revenue and has potential growth. I agree cross listing will give the stock more visibility and liquidity. Stanbic uganda did a bonus share issue of 1:5 in 2012 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 3/16/2019 Posts: 313
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Ericsson wrote:kmucheke wrote:VituVingiSana wrote:kmucheke wrote:obiero wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions
Why MTN Uganda’s IPO has failed to beat its targetExternal Factors- This IPO was forced by the govt MTN was initially reluctant and only did it as licensing renewal requirement. - The Uganda bourse is small with only 42,000 investors, and its performance is also lacklustre - Covid 19 pandemic market aftershocks (job cuts, reduced incomes etc) - Negative and biased social media commentaries Internal Factors- The IPO campaign by MTN was also lacklustre and not visible enough to excite the masses - The share price was perceived to be too high and it was not clear to the public whether Mobile money will be part of the deal Lets wait to see how the market will react It could be another Safaricom, soon after listing, and if so then time for Kenyans to jump in at less than 6/-. It should cross-list on the NSE to attract Kenyans. Stanbic Ug IPO price was Ugx. 70/= and was oversubscribed (200%). Current share price around Ugx. 26/=. A law was passed last year requiring all telcos in Ug to spin off mobile money as separate legal entities so that they come under Bank of Uganda regulations. So it is not clear who actually owns the mobile money entity since this is contributes to over 40% of revenue and has potential growth. I agree cross listing will give the stock more visibility and liquidity. Stanbic uganda did a bonus share issue of 1:5 in 2012 Thanks for that info. It explains a lot
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Rank: Elder Joined: 6/23/2009 Posts: 14,322 Location: nairobi
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2.5% gain on day one. too modest. will wait it out https://www.bloomberg.co...t-after-muted-ipo-demand COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
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VituVingiSana wrote:kmucheke wrote:obiero wrote:Queen wrote:Ericsson wrote:64.8% subscription Does this signify lack of confidence in the company or lack of liquidity in the market? First day of trading on Monday will answer your questions
Why MTN Uganda’s IPO has failed to beat its targetExternal Factors- This IPO was forced by the govt MTN was initially reluctant and only did it as licensing renewal requirement. - The Uganda bourse is small with only 42,000 investors, and its performance is also lacklustre - Covid 19 pandemic market aftershocks (job cuts, reduced incomes etc) - Negative and biased social media commentaries Internal Factors- The IPO campaign by MTN was also lacklustre and not visible enough to excite the masses - The share price was perceived to be too high and it was not clear to the public whether Mobile money will be part of the deal Lets wait to see how the market will react It could be another Safaricom, soon after listing, and if so then time for Kenyans to jump in at less than 6/-. It should cross-list on the NSE to attract Kenyans. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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MTN Uganda IPO..Whats cutting over there??
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