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MTN Uganda IPO..Whats cutting over there??
Rank: Member Joined: 3/16/2019 Posts: 313
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Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe
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Rank: Elder Joined: 6/23/2009 Posts: 14,251 Location: nairobi
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kmucheke wrote:Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe Well said
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Rank: Elder Joined: 12/4/2009 Posts: 10,810 Location: NAIROBI
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kmucheke wrote:Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe The liabilities the government takes them similar to how Treasury took over Telkom Kenya liabilities during the privatisation. Frequency spectrum will be part of the consideration that Safaricom will pay. National optical fiber backbone is under NITA so Safaricom can lease for use,build its own or go wireless. The cost of investment and modernization will be under Safaricom where they can negotiate on the price to be paid considering the costs they will incur to modernize. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 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. If MTN UG does not own MTN Money in Uganda then the 200/- price will crash! Safaricom had to buy MPesa in some sort of deal from Vodafone. 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: 18,361 Location: Nairobi
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kmucheke wrote: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 5 for 1 or 1 for 5? If 1 for 5 then it's a bust! 70 x 5 = 350. Ongeza 1:5 bonus for 6 shares. 350/6 = 58 Current price 26 so it is down 55%! 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: 18,361 Location: Nairobi
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Ericsson wrote:kmucheke wrote:Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe The liabilities the government takes them similar to how Treasury took over Telkom Kenya liabilities during the privatisation. Frequency spectrum will be part of the consideration that Safaricom will pay. National optical fiber backbone is under NITA so Safaricom can lease for use,build its own or go wireless. The cost of investment and modernization will be under Safaricom where they can negotiate on the price to be paid considering the costs they will incur to modernize. Since Ethiopia has slowed down until they sort themselves out, perhaps Saf should look at Uganda. Suspend the dividend for FY22 to fund their expansion into UG while watching Ethiopia. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,810 Location: NAIROBI
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VituVingiSana wrote:kmucheke wrote: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 5 for 1 or 1 for 5? If 1 for 5 then it's a bust! 70 x 5 = 350. Ongeza 1:5 bonus for 6 shares. 350/6 = 58 Current price 26 so it is down 55%! For every 1 share you were given 5 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,810 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:kmucheke wrote:Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe The liabilities the government takes them similar to how Treasury took over Telkom Kenya liabilities during the privatisation. Frequency spectrum will be part of the consideration that Safaricom will pay. National optical fiber backbone is under NITA so Safaricom can lease for use,build its own or go wireless. The cost of investment and modernization will be under Safaricom where they can negotiate on the price to be paid considering the costs they will incur to modernize. Since Ethiopia has slowed down until they sort themselves out, perhaps Saf should look at Uganda. Suspend the dividend for FY22 to fund their expansion into UG while watching Ethiopia. Or they look for a long term low interest loan of about 8 years,that way they can expand into Uganda without suspending dividends. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,810 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:kmucheke wrote:Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe The liabilities the government takes them similar to how Treasury took over Telkom Kenya liabilities during the privatisation. Frequency spectrum will be part of the consideration that Safaricom will pay. National optical fiber backbone is under NITA so Safaricom can lease for use,build its own or go wireless. The cost of investment and modernization will be under Safaricom where they can negotiate on the price to be paid considering the costs they will incur to modernize. Since Ethiopia has slowed down until they sort themselves out, perhaps Saf should look at Uganda. Suspend the dividend for FY22 to fund their expansion into UG while watching Ethiopia. The developments Ethio telecom is undertaking on its network and business will provide very stiff competition to Safaricom Ethiopia. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:kmucheke wrote:Ericsson 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. Safaricom should enter the Ugandan market through acquisition of majority stake of UTL UTL is very risky venture after many years of mismanagement and underinvestment. Unless the government of Uganda clears the liabilities, gives tax waivers, offers free frequency spectrum, gives national backbone optical fiber network and other incentives. Then maybe The liabilities the government takes them similar to how Treasury took over Telkom Kenya liabilities during the privatisation. Frequency spectrum will be part of the consideration that Safaricom will pay. National optical fiber backbone is under NITA so Safaricom can lease for use,build its own or go wireless. The cost of investment and modernization will be under Safaricom where they can negotiate on the price to be paid considering the costs they will incur to modernize. Since Ethiopia has slowed down until they sort themselves out, perhaps Saf should look at Uganda. Suspend the dividend for FY22 to fund their expansion into UG while watching Ethiopia. The developments Ethio telecom is undertaking on its network and business will provide very stiff competition to Safaricom Ethiopia. Which developments? Not talk but real improvements. How is Ethiotel funding these developments? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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MTN Uganda IPO..Whats cutting over there??
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