By Our Reporter
There has been a lot of excitement following the much anticipated announcement by telecom giant MTN that the public can now apply for shares which will see them own part of the company.
MTN has offered 4.5billion shares to the public at only UGX200 per share with a minimum investment requirement of 500 shares equivalent to UGX100,000.
The shares are acquired in lots of 500 meaning a potential investor is permitted to apply for either 500, 1000, 1500 shares and more.
The telecom has furthermore democratized the share acquisition process at the Uganda Securities Exchange through introduction of the first ever mobile IPO. The platform dubbed M-IPO will enable MTN KYC compliant customers to apply for shares via mobile money in the comfort of their homes.
To encourage participation in line with the company’s localization agenda of achieving broad-based Ugandan ownership, MTN has incentivized the offer for all Ugandan individuals applying for MTN Shares.
The incentive entails;10 bonus shares for every 100 shares applied for using MTN MoMo via USSD or the MyMTN app and 5 bonus shares for every 100 shares applied for using other methods of application e.g, paper applications or via the USE portal.
Here is a step by step process of how MTN customers can apply for MTN shares through the M-IPO via USSD:
First, you need an SCD account which serves as your account for shares.
To open that account, you simply need to dial *165*65#
Then select Option 1 to submit SCD Account Application
You will then be required to enter your full National ID Number (NIN).
Thereafter, select your preferred broker. A broker is a professional licensed by the Capital Markets Authority to buy and sell shares on behalf of investors.
Then choose option 1 to accept terms and conditions.
Enter your five digit mobile money PIN and save prompts.
On successful submission, you will receive a confirmation SMS on the creation of your SCD Account with details.
Once that is done, you can go ahead and purchase shares in MTN through your mobile money.
Here is how:
Simply dial *165*65#. Select 2 for apply for MTN shares
At that point, you will be reminded to read the prospectus, thereafter you can proceed to select ‘1’ for ‘Buy MTN Shares for self.
You will then be prompted to enter your SCD account details and subsequently a list of share values will be revealed. These vary between 500 shares (UGX100,000) to 2500 shares (UGX5million).
If your share value option is not listed, you are allowed to make multiple entries until the required value is attained.
Upon selection of the required value, you will be required to enter your pin number to confirm the transaction.