The Airtel Uganda Ltd. subsidiary of Airtel Africa plc, which is funded by billionaire Sunil Mittal and offers telecom services, said in a statement on Tuesday that it intends to generate $216 million through an initial public offering (IPO) of 800 billion Ugandan shillings (UGX).
The business informed the Uganda Securities Exchange that it will issue up to 20% of its equity, or 8 billion shares, in its first public offering (IPO) at a price of 100 UGX per share. Additionally, the IPO satisfies legal requirements that require the business to compulsorily list by 16 December 2023.
The promotion starts on Wednesday and runs until October 13. On October 31, the business will begin trading on the exchange.
Since 1995, Airtel Uganda Limited has provided mobile telecommunications services in Uganda. With 49% revenue and a market share of 47.3% of subscribers, it is presently the co-leader in the industry. In 146 Ugandan districts, the company has 14.3 million active subscribers.
Revenues, EBITDA, and net income for Airtel Uganda for the fiscal year that concluded on December 31, 2022, were each UGX 1,594 billion, UGX 888 billion, and UGX 326 billion, respectively.
In 1995, Airtel Uganda, formerly Celtel Uganda Limited, introduced the first mobile cellular network in the nation. The company changed its name to Airtel Uganda after being acquired by Airtel in June 2010.
“Ugandan investors, including the company’s consumers, are given preference in the IPO to hold a share in Airtel Uganda and take part in its future growth. Customer-centricity is one of our fundamental values, and this is very much in line with that, said Manoj Murali, managing director of Airtel Uganda Ltd.
Hannington Karuhanga, board chairman of Airtel Uganda Ltd., stated that “We shall give 5 shares to retailers for every 100 that they buy.”
The lead sponsoring broker for the IPO is Crested Capital, and the lead transaction adviser is Absa Bank Uganda Ltd.