MTN IPO: Why I Asked for MTN Stocks – Financial Analyst

William Nyakatura is a financial analyst and partner at Kinsman Advisory. He started investing in stocks in 2008 and shares his investing story.

I had heard so much about stocks during an IPO in 2007, but I had no money to invest. When I got my first job in 2008, I decided to buy stocks.

Being from Hoima, I decided to invest in British American Tobacco, as we are a tobacco producing region. The shares were then at 330 shillings each. My cousin also decided to buy stocks and we both bought at the same time.

By 2013, the share price had steadily increased until 2000 and I couldn’t resist the temptation to sell my shares. I was very happy with the return I had made and smiled a little when my cousin didn’t want to sell. Three years later, my cousin sold his shares at 30,000 shillings each! The last laugh was really hers.

Over the years, I have come to appreciate the affordability of the stock market as a means of long-term investment. There aren’t a lot of affordable investment options that still deliver a return.

This is one of the reasons I asked for MTN shares as soon as the offer opened. I also considered it to be one of the largest companies in Uganda, in an industry vital in an economy that relies on communication services.

This is important because stocks are an investment in the future of a business.

Equities, however, are not without risk. You can’t really say what kind of return you’ll get from a business over time. Past and current performance is no guarantee of future performance.

The same stocks that my cousin sold at a yield of 1000%, at one point fell from the IPO price of 1000 to 300. The same stocks are currently the most expensive stocks on the market.

What I take most from the stock market is the lesson I learned, stocks are a viable opportunity to invest for the long term.

Who is William Nyakatura?

William is a seasoned financial investment advisor with over 10 years of professional experience in the capital markets industry in the Ugandan, Kenyan and Rwandan markets.

William worked as a business advisor for 11 years at African Alliance. In 2017, he joined Kinsman Advisory as a Chief Instructor.

Based on his knowledge and expertise in the capital markets, William has now been engaged by SBG Securities as a consultant in connection with MTN’s IPO.

Education

William graduated from Makerere University after earning a bachelor’s degree in business administration, finance, and financial management services. William is the recipient of the prestigious Tony Elumelu scholarship in 2017.