The Capital Markets Authority has announced they will proceed with listing of MTN’s shares after court dismissed a lawsuit filed by lawyer Male Mabirizi questioning the legality of the entire process.

SEE ALSO: Lawyer Mabirizi spotted sneaking to NRM secretariat

In his lawsuit, Mabirizi challenged the CMA’s approval of the MTN prospectus in respect to MTN Uganda’s initial public offering of 4.5 billion ordinary shares on grounds that the company was not well-incorporated.

The CMA avers that court examined their powers and duties and whether the applicant [Mabirizi] had a basis in law to file the application and examined any connection between Mabirizi and the respondent.

After the ruling, the applicant proceeded to request a temporary injunction to restrain the CMA from extending the MTN IPO window and from the eventual listing of the MTN shares on the Uganda Securities Exchange, which prayers were heard and disposed of.

At the celebrations of the world investor week in Kampala, Paul Bwiso, the chief executive officer of the CMA, had expressed optimism that the IPO would attract more than 108,000 clients. Just three days from the closure of the IPO, MTN Uganda announced that they had registered 60,000 new clients since the IPO announcement.

In the previous issue, The Observer had recognised that the Mabirizi lawsuit had raised unnecessary noise and criticism backed by social media criticism of the IPO.

Responding to the court ruling through Twitter, Mabirizi accused Justice Phillip Odoki, who heard the case, of double standards.

Spread the love
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Your email address will not be published. Required fields are marked *

Ekyooto Uganda
Don`t copy text!