Airtel Uganda Ltd, a prominent subsidiary of the global telecommunications giant Airtel Africa Plc, is embarking on a transformative journey with ambitious plans to raise a staggering Shs800 billion through a meticulously crafted Initial Public Offering (IPO).
With unwavering determination, the company has set the price per share for this monumental IPO at Shs 100, a figure that symbolizes its faith in the future.
Airtel Uganda is inviting investors to seize the opportunity to acquire up to a 20% stake, a significant 8 billion shares that will not only shape the company’s destiny but also catalyze Uganda’s telecommunications landscape.
The IPO serves as a means to meet regulatory obligations, necessitating the company’s mandatory listing by December 16, 2023. Commencing on August 30, the offering will conclude on October 13.
Airtel Uganda Limited has been providing mobile telecommunications services in the country since 1995 and presently holds a co-leadership position in the market, boasting a 49% revenue share and a 47.3% subscriber market share.
The telecommunications company boasts 14.3 million active subscribers spanning 146 districts nationwide.
For the fiscal year ending on December 31, 2022, Airtel Uganda achieved revenues of Shs1,594 billion, EBITDA of Shs888 billion, and net income of Shs326 billion.
Originally known as Celtel Uganda Limited, Airtel Uganda launched the country’s inaugural mobile cellular network in 1995. After being acquired by Airtel in June 2010, the business underwent rebranding and became Airtel Uganda.
“The IPO gives preference to Ugandan investors, including the company’s customers, to own a share in Airtel Uganda and participate in its future growth. This is very much in line with one of our core values of customer-centricity,” Airtel Uganda Managing Director, Manoj Murali, asserted.
Absa Bank Uganda Ltd serves as the primary transaction advisor for the IPO, while Crested Capital assumes the role of the leading sponsoring broker.
In 2021, MTN Uganda executed an initial public offering on the Ugandan stock exchange, resulting in the generation of Shs535.94 billion.
This amount fell short of its initial target, representing less than two-thirds of the projected goal. The offering entailed the allocation of roughly 2.9 billion shares from the total pool of 4.5 billion shares that had been made available.
The company aims to sell the remaining shares to reach the 20% threshold, as mandated by new government regulations, by the conclusion of 2024.
This unprecedented move signifies Airtel Uganda’s resolute commitment to fueling growth, innovation, and connectivity in the region, setting a benchmark for the telecommunications industry that reverberates across borders.
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