MTN Rwanda to list on Rwanda Stock Exchange

MTN Rwanda (MTN Rwandacell Plc) has announced that it will list on the Rwanda Stock Exchange (RSE) on May 4, 2021. MTN Rwanda will be trading in existing shares worth about $365 million. This announcement follows the approval by the Capital Market Authority (CMA) and the RSE of MTN Rwanda’s listing by introduction on the RSE.

Before the listing, Crystal Telecom’s (CTL) shareholders have agreed to distribute 20% of MTN Rwanda’s shareholding to its shareholders.  The CTL will distribute the shares to its shareholders effective from the listing date.

Commenting on the announcement, Mitwa Ng’ambi, CEO of MTN Rwanda, expressed delight in the opportunity to enlist on the RSE.

 “The official listing of MTN Rwanda’s shares on the RSE will take place on 4 May 2021. We look forward to participating in the capital markets of Rwanda. [We] 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”. 

Mitwa Ng’ambi, CEO of MTN Rwanda

A total of 1.350 billion ordinary shares

Meanwhile, the listing of MTN Rwanda will see 1,350,886,600 ordinary shares with a nominal value of Rwf 1 each being registered with the RSE. The initial listing price is Rwf269 per ordinary share. Per the current listing, CTL shareholders will become direct shareholders in MTN Rwanda. This will enable them to trade their MTN Rwanda shares on the RSE.

Also, the CMA Executive Director, Eric Bundugu expects the listing to continue to provide enough liquidity for all shareholders.

“We welcome MTN Rwanda’s listing by introduction on the RSE.  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”.

Furthermore, Iza Irame, CTL’s CEO, said “we are happy to see this important transaction materialize”. According to her, this will allow their shareholders to retain their economic interest in MTN Rwanda. It will also help them gain from the efficiency and visibility that comes with direct ownership.

Listing to increase market’s capitalization

Also, Celestin Rwabukumba, CEO of the RSE, noted that the listing will help develop the stock market.  She indicated that it will increase the market’s capitalization.

Ms. Rwabukumba stated that the size of MTN adds on the number of leading brands to the stock Exchange. She added that it offers more visibility into the company’s operations to shareholders and the general investing public. This, she believes, “should trigger more interest from potential new investors going forward”.

Meanwhile, MTN Group President and CEO Ralph Mupita called the listing a milestone “enabling Rwandans the opportunity to participate in the company’s success”. According to him, this forms part of the company’s work to promote local ownership and participation in MTN businesses across its markets. It will also help “to create shared value”. He added that the listing was particularly significant given the increasing importance of broadband access in driving economic and industrial development across Africa.

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