MTN Uganda has declared a quarterly dividend of Sh0.24 per share following a 21.1 percent increase in net profit to Sh14.2 billion for the nine months ending in September. The total revenue also saw a significant 15.9 percent increase to Sh78.5 billion.

The company stated, “Notice is hereby given that the company’s directors have approved the payment of a second interim dividend of USh6.0 per share for the quarter ending 30 September 2023.” The ex-dividend date is set for Tuesday, November 28, 2023, in accordance with the Uganda Securities Exchange (USE) Trading Rules 2021. Investors acquiring MTN Uganda shares before this date will be eligible for the interim dividend, while those purchasing shares after this date will not qualify for the declared dividend.

The dividend will be disbursed on December 22, and Kenyan individual and institutional investors will be among the recipients of MTN’s dividend payments. Notable beneficiaries include the National Social Security Fund (NSSF) with 39.8 million shares, billionaire investor Baloobhai Patel with 15.7 million shares, and the Central Bank of Kenya Pension Fund with 12.4 million shares.

Additionally, investors who obtained shares in Airtel Uganda through its recently concluded IPO will receive regular dividends, with the telco committing to distribute at least 95 percent of the net or retained earnings per annum. Airtel Uganda primarily relied on the country’s pension fund and retail investors, including East African citizens, to raise Sh8.5 billion in the IPO, which was undersubscribed.

Most of the funds were contributed by Uganda’s NSSF, which acquired 4.2 billion shares, giving it a 10.55 percent stake in the telco. Individual investors acquired 136 million shares, accounting for a 0.34 percent stake in the company, valued at approximately Sh547 million.

The pension fund’s participation helped the IPO reach a 54.45 percent performance level, as many institutional investors did not participate in the offering, where the telco sold shares at UGX100 (Sh4) each.