MTN to list on Rwanda Stock Exchange

MTN Rwandacell Plc (MTN Rwanda) will next month list on the Rwanda Stock Exchange (RSE) after obtaining approvals from authorities and a minority shareholder.

MTN Rwanda, which is majority-owned by pan-African operator MTN Group, said this week that it will list locally on May 4, 2021, after approval by the Capital Market Authority (CMA) RSE. It will be a listing by introduction rather than an IPO.

The telco also received approval from Crystal Telecom's (CTL) shareholders to distribute the 20% of MTN Rwanda's shareholding.

CTL shareholders will thereafter become direct shareholders in MTN Rwanda and can trade their shares on the stock exchange.

MTN Rwanda said it would list 1.35 million ordinary shares with a nominal value of one Rwandan franc each at an initial listing price of Rwf269 ($0.27) per ordinary share.

This values the operator at almost $365 million.

"We look forward to participating in the capital markets of Rwanda and see this as an exciting opportunity for the investor community at large to participate directly in the ownership of MTN Rwanda. We are also excited to welcome former CTL shareholders as MTN Rwanda shareholders," said MTN Rwanda CEO Mitwa Ng'ambi.

At the end of December 2020, MTN had 6 million subscribers in Rwanda.

According to statistics from market research company Omdia, MTN controls about 59% market share in Rwanda.

MTN announced its intention to list MTN Rwanda back in December 2020 to increase local ownership.

The operator already has local listings in Nigeria and Ghana and its primary listing is on the Johannesburg Stock Exchange in South Africa.

"We welcome MTN Rwanda's listing by introduction on the RSE as a demonstration of an international company local investors can continue to participate in as well as being an attraction to foreign investors into the Rwandan capital market. The listing will also continue to provide liquidity for existing and future shareholders," said CMA Executive Director Eric Bundugu.

MTN Group CEO Ralph Mupita called the listing "a milestone" and said it was particularly significant given the increasing importance of broadband access in driving economic and industrial development across Africa.

"Enabling Rwandans the opportunity to participate in the company's success is part of our work to promote local ownership and participation in MTN businesses across our markets, and to create shared value," said Mupita.

*Top image is of MTN Rwanda CEO Mitwa Ng'ambi (Source: MTN Rwanda).

— Paula Gilbert, Editor, Connecting Africa