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The company will give more preference to Ugandan investors
Kampala, Uganda | PATRICIA AKANKWATSA | Airtel Uganda plans to float a 20% stake in the company, equivalent to 8 billion ordinary shares, via an initial public offer (IPO) to be listed on the Uganda Securities Exchange (USE).
The operator said that the offer will give preference to Ugandan investors, with a listing to be carried out by December 16 in fulfilment of the National Telecommunications Operator (NTO) license.
“The offer is expected to result in meaningful local ownership of Airtel Uganda Ltd, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda,” Airtel Uganda Finance Director, Nishant Mohan said.
“This is very much in line with one of our core values of customer-centricity and we believe that the IPO will enhance Airtel Uganda’s profile across the continent,”
Airtel was given a 12-month extension to list its shares after initially missing the deadline last December. Its closest rival, MTN Uganda carried out its share listing back in 2021.
If the move gets approval from the Capital Markets Authority of Uganda, the shares will be offered to investors both via traditional channels and through the Airtel Money platform.
Airtel has picked Absa Bank Uganda as its lead transaction advisor for the process and Crested Stocks and Securities Limited as its Lead Sponsoring Broker.
Airtel’s journey
Airtel Uganda has offered mobile telecommunications services in the East African nation since 1995 and is currently the co-leader in the market with 49% revenue, and 47.3% subscriber market share, respectively. The company has 14.3 million active subscribers across Uganda.
On 1 July 2020, Airtel Uganda was granted an NTO License which permits the company to establish, install, operate, maintain, lease and sell telecommunications systems and to provide all types of telecommunication services in Uganda.
The NTO License is valid for twenty years from 1 July 2020 to 30 June 2040 and can be renewed for a further ten years.
Airtel Uganda, previously Celtel Uganda Limited, launched the country’s first mobile cellular network in 1995. Following the acquisition by Bharti Airtel Limited (“Bharti Airtel”) in June 2010, the business was rebranded as Airtel Uganda, thereby introducing the Airtel brand to the country. At that time 3G population coverage was as low as 42%.
Population coverage has risen significantly over the past decade, with Airtel Uganda’s 3G population coverage currently at 98.1%.
The company has established itself as one of the most innovative cellular mobile network operators in Uganda and was the first mobile network operator in Uganda to introduce 4G LTE technology across all its sites, currently covering 90.7% of the Ugandan population with its leading 100% 4G Network.
Airtel Uganda is a subsidiary of Airtel Africa plc, listed on the London Stock Exchange, which has a pan-African business operating across 14 countries, comprising over 140 million subscribers and a market capitalisation of approximately $5.5 billion.
Airtel Uganda had Revenues, EBITDA and Net Income of Shs1.59 trillion, Shs 888 billion and Shs 326 billion, respectively.
