Airtel Uganda Ltd, a telecom services provider and subsidiary of Airtel Africa plc, plans to raise 800 billion Ugandan shillings (UGX) or $216 million through an initial public offering (IPO), as stated in an official announcement on Tuesday. The company has set the IPO price at 100 UGX per share, offering up to a 20% stake or 8 billion shares. This move complies with regulatory mandates that require the company to list by December 16, 2023.
The IPO is scheduled to open on Wednesday and close on October 13, with trading on the Uganda Securities Exchange expected to commence on October 31.
Airtel Uganda Limited has been providing mobile telecommunications services in Uganda since 1995 and holds a co-leader position in the market with 49% revenue and 47.3% subscriber market share. The company boasts an active subscriber base of 14.3 million spread across 146 districts in Uganda.
In the fiscal year ending on December 31, 2022, Airtel reported revenues of UGX 1,594 billion, EBITDA of UGX 888 billion, and net income of UGX 326 billion.
Airtel, previously known as Celtel Uganda Limited, introduced the nation’s first mobile cellular network in 1995. Following its acquisition by Airtel in June 2010, the business underwent a rebranding as Airtel Uganda.
The IPO is designed to prioritize Ugandan investors, including the company’s customers, aiming to allow them to own a share in Airtel Uganda and participate in its growth. Manoj Murali, the Managing Director of Airtel Uganda Ltd, highlighted that this initiative aligns with the company’s commitment to customer-centricity.
To encourage retail participation, the IPO plan includes giving 5 additional shares to retailers for every 100 shares purchased, according to Hannington Karuhanga, the Board Chairman of Airtel Ltd. Absa Bank Uganda Ltd. serves as the lead transaction adviser for the IPO, while Crested Capital holds the position of lead sponsoring broker.
