Investors

FAQs

FAQs

  1. Why a listing by introduction?  
    • The key objectives of the listing are to create access for the Rwandan public to participate in ownership of MTN Rwandacell PLC, to provide liquidity for existing shareholders and to create a stable and supportive long-term shareholder base to ensure a healthy and liquid aftermarket performance. We believe a Listing by Introduction (“LBI”) provides a suitable platform to achieve these objectives.
    • MTN Rwandacell PLC has an optimum and efficient capital structure and sufficient access to the debt market. It does not need primary equity capital to fund the business.
    • We are therefore of the view that the LBI is the suitable platform to achieve its listing objectives, including liquidity for its minority shareholders while building Rwanda’s capital markets
  2. What is a listing by introduction?
    • A listing by introduction means that the existing shares of MTN Group (80%) and Crystal Telecom (20%), planned to be held directly by Crystal Telecom’s shareholders at the listing MTN Rwandacell PLC, will be listed on the RSE without an additional public sale of shares. From this point, all MTN Rwandacell PLC shareholders will be free to trade their shares on the RSE secondary market
  3. What is the criteria for a listing by Introduction on the RSE?
    Key requirements for admission to the RSE include:
    • A minimum of 1000 shareholders, which is expected to be achieved by the direct holdings of Crystal Telecoms shareholders; and
    • A 25% free float of its issued capital. MTN Rwandacell PLC applied and received from the Capital Market Authority (“CMA”) and the RSE, a waiver of this requirement on the basis of the 20% free float from Crystal Telecoms’ shareholders
  4. How will Crystal Telecom shareholders hold their shares directly?
    • Crystal Telecom intends to dissolve its business and thereafter distribute its surplus assets in specie to its shareholders. Its surplus assets comprise mainly of its shareholding in MTN Rwandacell PLC
  5. Will MTN Rwandacell PLC shares be listed at a nominal value of FRW10,000?
    • No, the existing ordinary shares of FRW10,000 have been subdivided to a nominal value of FRW1 per share and a further 1,350,885,100 new shares will be issued so that MTN Rwandacell PLC will have 1,350,886,600 ordinary shares at listing
  6. Has MTN Rwandacell PLC converted to a public company?
    • Yes, MTN Rwandacell PLC became a public company on 18th December 2020.
  7. Will MTN Group be selling MTN Rwandacell PLC shares before or during the listing by introduction?
    • Since the listing is by way of introduction there will be no share offer at the time of the listing.
    • We are of the view that the LBI is the suitable platform to achieve its listing objectives, including creating liquidity for its minority shareholders while building Rwanda’s capital markets, without further share offers into the market.
    • MTN Group will also be subject to a 24-month lock in period.
    • No decisions have been made around future share offers
  8. Is the company raising new capital?
    • No, the Company is not raising new capital during the Listing by Introduction
  9. At what price will MTN Rwandacell PLC be listed?
    • A listing by introduction involves the listing of the shares of the current shareholders, without a share offer ahead of the listing. This differs from an IPO process where a price would be linked to the offer. Trading will thereafter commence on the RSE secondary market.
    • MTN Rwandacell PLC’s  listing price of RWF 269 per share was based on the indicative fair value of MTN Rwandacell PLC and therefore differed from the current CTL trading price. The Information Memorandum includes the listing price, which serves as an initial reference price in terms of the rules of the CMA and the RSE.
    • Actual trading on the listing day will determine MTN Rwandacell PLC’s trading price.
  10. Does the Listing by Introduction satisfy MTN Rwandacell PLC’s regulatory obligations?
    • MTN Rwandacell PLC currently has no regulatory obligations to list.
    • MTN Rwandacell PLC remains committed to broadening Rwandan access to MTN Rwandacell PLC via the RSE
  11. How can potential investors register interest in acquiring shares and / or take steps to get ready to acquire shares?
    • There will be no offering of shares prior to listing. However, interested investors can register their interest through their stockbrokers or any of the advisers connected with the transaction to purchase shares on the RSE at or post listing of the ordinary shares on the Exchange
  12. Will staff be able to buy MTN Rwandacell PLC shares during the Listing by Introduction?
    • Staff who are interested in buying MTN Rwandacell PLC’s shares should contact their stockbrokers to help purchase MTN Rwandacell PLC shares on the RSE at or post listing of the ordinary shares on the Exchange.
  13. What governance codes will MTN Rwandacell PLC have to adhere to?
    • MTN Rwandacell PLC will have to adhere to the RSE Rule Book 2013 and The Capital Market Corporate Governance Code N° 09, 2012
  14. What is the dividend policy of MTN Rwandacell PLC?
    • MTN Rwandacell PLC will target a minimum dividend pay-out ratio of 50% of its distributable net income in the medium term, other than in 2021 where a pay-out ratio of at least 30% will be targeted to take account of the renewal of MTN Rwandacell PLC’s license.