Airtel launches industry's second IPO in Uganda
Date: 2023-08-29
Airtel Uganda has officially launched its first Initial Public Offering (IPO) of 8 billion UGX existing ordinary shares, representing 20 per cent of the company at the Sheraton Kampala Hotel, in Kampala. This makes Airtel the second network operator after MTN in the Ugandan telecommunication sector to offer shares to the public through an IPO.
The Offer gives preference to Ugandan investors, including the Company’s customers, to own a share in Airtel Uganda and participate in its future growth.
Speaking at the launch ceremony on Tuesday, the Managing Director of Airtel Uganda, Manoj Murali stated that following the completion of the offer, and upon approval from relevant authorities, Airtel Uganda will apply for the admission of its issued share capital to the Main Investment Segment (MMS) of the Uganda Securities Exchange (USE).
According to him the IPO will see up to 8,000,000,000
existing ordinary shares of the company representing up to 20 per cent of the
Company to investors.
“The size of the offering is in keeping with the regulatory
requirements of our license, and a demonstration of our commitment to
supporting the development of the Ugandan capital market,” he iterated.
Mr. Manoj added that the stage for this IPO launch has been
set because Airtel Uganda is innovative and profitable.
“Airtel Uganda has established itself as the most innovative cellular mobile network operator by introducing many firsts in the Ugandan telecommunications sector. Moreover, we are performing well. For the year ended 31 December 2022, Airtel Uganda had revenues, EBITDA and Net Income of UGX 1,594 billion, UGX 868 billion and UGX 326 billion, respectively,” Mr. Manoj said
The ICT Ministry Permanent Secretary, Aminah Zawedde in her
remarks also noted that Airtel Uganda’s IPO marks a moment of unity where
public interests converge for the betterment of the nation.
“As we embrace this new chapter we must recognize the
importance of collaborative efforts,” she said.
CEO of Uganda Securities Commission (USE), Paul Bwiso in his
part clarified the amount of shares listed. “The company is listing 40 billion
shares on the exchange and offering 20 per cent to the public which is 8
billion shares,” he confirmed.
By: Kanto Okanta
