Airtel Uganda has officially launched its initial public offering (IPO) process, as per the regulations laid out by the Ugandan Capital Markets Authority. The telecommunications giant revealed that the per-share price for the IPO has been set at 100 Ugandan Shillings valuing the nation's second-biggest telecommunications carrier at 4 trillion shillings. This announcement was made during a grand event held on Tuesday, August 29th, 2023, at the Rwenzori Ball Room of the Sheraton Kampala Hotel.
Also Read: Airtel Uganda Plans IPO for 20 Percent Stake on Uganda Securities Exchange
Management Insights
The announcement came during the launch of the company's prospectus, where Airtel Uganda's Managing Director, addressed stakeholders and investors. The MD revealed that the IPO will see the availability of up to 8 billion existing ordinary shares of the company, amounting to 20 percent of the total shares, for potential investors to acquire.
Airtel MD emphasised that 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 markets. "The stage for this IPO launch has been set because Airtel Uganda is innovative and profitable," he added.
Financial Performance
The MD further presented the company's financial performance, citing revenues of UGX 1,594 billion, EBITDA of UCX 868 billion, and a Net Income of UGX 326 billion for the year ending December 31, 2022.
Also Read: Airtel Uganda Rolls Out 5G Network
Unique Offer of Additional Shares
Board Chairman of Airtel Uganda, also made a significant announcement during the event. He revealed the company's intention to promote retail participation in the IPO by offering 5 additional shares to retailers for every 100 shares purchased.
UCC's Push for Local Ownership
The involvement of regulatory bodies and industry stakeholders was evident during the event.
Corporation Secretary of the Uganda Communications Commission (UCC), recalled the UCC's efforts to promote Ugandan participation in the telecom sector by recommending that telecoms list 20 per cent of their shares as part of their licenses.
CEO of the Uganda Securities Exchange, cleared up any confusion regarding the share listing. He clarified that Airtel Uganda is set to list a total of 40 billion shares on the exchange and will make 20 percent of that, equivalent to 8 billion shares, available to the public through the IPO.
Chief Executive Officer of Capital Markets Authority - Uganda, highlighted the magnitude of the opportunity that this IPO presents for Ugandans to invest in the company and contribute to the growth of the nation's capital markets.
Permanent Secretary of the Ministry of ICT and National Guidance, marked the occasion as a moment of unity where public and private interests align for the betterment of the country. As we embrace this new chapter we must recognise the importance of collaborative efforts, the secretary concluded.
Also Read: Airtel Uganda Expands 5G Network to Several Prominent Locations
The offer period begins on Wednesday and ends on October 13, as per the prospectus released in Kampala on Tuesday. The company will start trading on the stock exchange on October 31.
For those interested in becoming investors, Airtel Uganda provided a simple way to start the journey by dialing *185*85#.
Uganda has asked that telecommunication companies sell a minimum of 20 percent of their shares on the local stock exchange to boost domestic ownership and strengthen the country's financial markets. If Airtel Uganda meets its IPO goal, it will become the largest company in Uganda in terms of market capitalization.
