MTN Uganda has firmly established itself as a powerhouse on the Uganda Securities Exchange (USE), delivering an exceptional 71% increase in stock value over the past six months.
This growth trajectory has propelled the telecom giant to the second spot among East Africa’s most valuable companies, trailing only Kenya’s Safaricom.
As of January 2025, MTN Uganda’s market capitalization surged to $1.8 billion, a leap from $1.008 billion at the close of 2023.
Bullish Momentum
The remarkable performance of MTN Uganda’s stock is attributed to a blend of strategic factors.
The company’s secondary share offer, completed in June 2024, was oversubscribed by nearly 100%, reflecting strong institutional and retail investor confidence.
This institutional demand has persisted, driven by the company’s solid financial performance and regular dividend payouts, which provide investors both returns and liquidity relief.
“Since the company’s secondary share offer, there’s been a significant surge in institutional demand for MTN’s stock,” noted Grace Semakula, CEO of SBG Securities Uganda.
“The combination of robust results and consistent dividend payments has solidified its attractiveness as a long-term investment.”
Moreover, Uganda’s liberal foreign exchange policy and the challenges faced by Safaricom in Ethiopia’s telecom market have further amplified MTN’s appeal to investors.
With a steadily growing subscriber base and rising profitability, MTN is now the stock of choice for those looking to gain exposure to East Africa’s thriving telecom sector.
Record-Breaking Trades
MTN Uganda has dominated trading activity on the USE over the last three months, moving an impressive 62.4 million shares worth $3.8 million. On November 7, 2024, the stock reached a volume peak, with 39.4 million shares traded in a single session. These figures underscore the stock’s liquidity and its appeal to a diverse range of investors.
The stock’s price trajectory tells a compelling story. From its initial public offering (IPO) in December 2021, priced at Ush200 ($0.054) per share, MTN’s value has steadily climbed. By mid-September 2024, it stood at Ush181, but by January 2025, it had surged to Ush288.50 ($0.078) per share. This growth reflects the company’s ability to deliver consistent shareholder value.
Subscriber Growth
MTN Uganda’s financial results have been a key driver of investor confidence. By the end of Q3 2024, the company reported a profit after tax of Ush459.4 billion, up from Ush295.7 billion in 2022. The company’s subscriber base has also grown from 20.7 million in mid-2022 to 21.6 million, further bolstering its revenue streams. Dividend payouts have been equally impressive, with shareholders receiving two interim dividends of Ush6.6 and Ush7.5 per share in 2024.
The company’s largest local shareholders, including NSSF Uganda and MTN Uganda Board Chairman Charles Mbire, have reaped significant gains.
NSSF Uganda’s holdings have appreciated by over $85.7 million, while Mbire’s stake has grown by $29.2 million. These represent the largest individual stock gains in the USE’s nearly 25-year history.
Regional Leadership
MTN Uganda’s ascent to the second most valued company in East Africa underscores its strategic positioning in the regional telecom market. While Safaricom retains the top spot with a market valuation of $5.7 billion, MTN’s rapid growth trajectory signals its ambition to further narrow the gap.
Analysts remain optimistic about MTN’s future, citing its robust business model, growing subscriber base, and continued commitment to shareholder returns. As the telecom sector evolves, MTN Uganda is poised to remain a dominant player, offering investors a compelling mix of growth and stability.
