Airtel Uganda is set to float a 20% stake, comprising 8 billion ordinary shares, through an initial public offering (IPO) listed on the Uganda Securities Exchange (USE).
KAMPALA, UGANDA | NOW THEN DIGITAL — Airtel Uganda plans to offer a 20% stake, which equals 8 billion ordinary shares, through an initial public offer (IPO). These shares will be listed on the Uganda Securities Exchange (USE).
The IPO aims to fulfill the National Telecommunications Operator (NTO) license requirements.
The offering will prioritize Ugandan investors and should be completed by December 16. Airtel Uganda’s Finance Director, Nishant Mohan, expects this move to foster local ownership and contribute to Uganda’s capital market development.
“The offer is expected to result in meaningful local ownership of Airtel Uganda Ltd, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda. This is very much in line with one of our core values of customer-centricity and we believe that the IPO will enhance Airtel Uganda’s profile across the continent,” Airtel Uganda Finance Director, Nishant Mohan said.
Airtel received a 12-month extension to meet the listing deadline. Its closest competitor, MTN Uganda, completed its share listing in 2021. Pending approval from the Capital Markets Authority of Uganda, the shares will be accessible through both traditional channels and the Airtel Money platform.
Absa Bank Uganda will serve as the lead transaction advisor, and Crested Stocks and Securities Limited as the Lead Sponsoring Broker.
Airtel Uganda has been providing mobile telecommunications services in Uganda since 1995. It is currently a co-leader in the market, holding 49% of revenue and 47.3% of the subscriber market share, with 14.3 million active subscribers.
Youmight also like
In July 2020, Airtel Uganda obtained an NTO License, enabling it to offer various telecommunication services in Uganda. This license is valid until June 2040, with an option for a ten-year renewal.
Originally known as Celtel Uganda Limited, the company rebranded as Airtel Uganda after being acquired by Bharti Airtel Limited in June 2010. Since then, it has expanded its population coverage, with 3G now available to 98.1% of the population.
Airtel Uganda is a subsidiary of Airtel Africa plc, listed on the London Stock Exchange, operating in 14 countries with over 140 million subscribers and a market capitalization of approximately $5.5 billion. In its last financial report, Airtel Uganda reported revenues of Shs1.59 trillion, EBITDA of Shs 888 billion, and a net income of Shs 326 billion.
Editor’s Note: If you come across any inaccurate or outdated content, kindly reach out to us at press@nowthendigital.com for immediate assistance.
