Airtel Uganda Limited has recently announced its intention to conduct an initial public offering (IPO) of 8 billion existing ordinary shares, representing 20% of the company’s ownership. The IPO, which opened on August 30, 2023, and closes on October 13, aims to raise UGX 800 billion (approximately $216 million).
Upon completion of the IPO and subsequent regulatory approvals, Airtel Uganda will become a publicly listed company on the Main Investment Market Segment of the Uganda Securities Exchange (USE), with trading set to commence on October 31.
Airtel Uganda is a subsidiary of Airtel Africa plc and started operations in the country in 1995. The company has amassed 14.3 million active subscribers across 146 districts in the country. Airtel Uganda holds a market share of 49% of the revenue and 47.3% of the subscriber market.
The IPO aligns with the regulatory mandate in Uganda, which stipulates that telecommunications companies are required to list a minimum of 20% of their shares on a licensed stock exchange in the country.
A statement from the company shows that in the year ended December 31, 2022, it reported revenues of UGX 1,594 billion, EBITDA of UGX 888 billion, and net income of UGX 326 billion.
Absa Bank Uganda Limited is the Lead Transaction Adviser while Crested Stocks and Securities Limited is the Lead Sponsoring Broker. The legal aspect of the transaction is being overseen by Katende, Ssempebwa & Company Advocates, while Ernst & Young Certified Public Accountants is serving as the Reporting Accountants.
During 2021, MTN Uganda conducted an initial public offering on the Ugandan stock exchange, generating 535.94 billion shillings ($150.2 million or R2.42 billion). This amount fell short of its initial target, amounting to less than two-thirds of the projected goal. The offering saw the allocation of approximately 2.9 billion shares from the total of 4.5 billion shares that were made available.
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