Telecom company, Airtel Uganda has set shs100 as the price for each of its shares for the initial public offering as the company prepares to list on the Uganda Securities Exchange.
The development was announced on Tuesday by the Airtel Uganda Managing Director, Manoj Murali at a function held at Sheraton Hotel in Kampala.
“Airtel has established itself as the most innovative cellular mobile network operator in Uganda by introducing many firsts in the country’s telecommunication market. The Initial Public Offer will see eight billion shares existing ordinary shares of the company making 20% of the company made available and it will be a value of shs800 billion,” Murali said.
Boasting of being the market leader in calls in the country, Airtel’s Managing Director said the company with a 49% market share and 13.8 million active subscribes in 146 districts around the country will be fulfilling the requirement of the National Telecommunications Operator (NTO) license.
While its rival, MTN Uganda carried out its share listing in 2021, Airtel was given a 12-month extension to list its shares after initially missing the deadline last December.
“The IPO shows our commitment to support Uganda’s stock market. It also gives confidence to Ugandan investors including company customers to own a share in the company and participate in our future growth story. We believe this IPO will enhance Airtel Uganda’s profile across the continent,” Manoj Murali, the Airtel Uganda MD said.
Airtel Uganda board chairperson, Hannington Karuhanga said the offer is now officially open and will close on October, 13, 2023 at 4pm.
The Chief Executive Officer of the Capital Markets Authority, Keith Kalyegira described the development as a big milestone for not only Airtel but also the country at large in terms of the exchange market capitalization.
“With 20% of its shares being issued, the total market capitalization on the Uganda Securities Exchange will increase from about shs7.2 trillion to about shs11.2 trillion. This means we have crossed the shs10 trillion mark for the first time in our history,”Kalyegira said.
He hailed Airtel for allowing the public be part of its journey in the country that he said will grow more confidence among Ugandans in the telecom company.
The Capital Markets Authority boss said the development will now bring the total number of companies listed to 11 after the issuance of eight billion shares by Airtel.
“As the regulator, we expect to continue operating with the highest standards of corporate governance and with utmost dedication.”
Airtel has chosen Absa Bank Uganda as its lead transaction advisor for the process and Crested Stocks and Securities Limited as its lead sponsoring broker.
Speaking on Tuesday, Absa bank Uganda Managing Director, Mumba Kalifungwa said the development is yet another opportunity for the bank to work closely with Airtel Uganda to contribute to the development of the country.
“Absa is honoured to be part of this IPO journey in Uganda offering our financial expertise, advisory and support as the lead transaction advisor. This IPO demonstrates Airtel’s commitment to this market by listing and issuing shares to the public. It is a vote of confidence in Uganda’s capital market,” Kalifungwa said.
Joining the Ugandan market as Celtel Uganda in 1995, Airtel was the country’s first mobile cellular network and has grown by leaps and bounds.
As of December, 31, 2022, Airtel Uganda had revenues, EBITDA and net income of shs1.59 trillion, shs 888 billion and shs 326 billion respectively.
