Airtel Uganda to roll out $216 million IPO
MUMBAI/ NEW DELHI : Billionaire Sunil Mittal backed telecom services provider Airtel Uganda Ltd, a subsidiary of Airtel Africa plc, plans to raise 800 billion Ugandan shillings or $216 million in an initial public offering (IPO), it said in a statement Tuesday. The company set the price for its initial public offering (IPO) at 100 Ugandan shillings (UGX) apiece, and will offer up to 20% stake or 8 billion shares, the company told the Uganda Securities Exchange. The IPO also fulfills regulatory requirements under which the company has to mandatorily list by 16 December.
The offer opens on Wednesday and closes on 13 October. The company will start trading on the exchange on 31 October. Airtel Uganda has offered mobile telecommunications services in Uganda 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 146 districts in Uganda. For the year ended 31 December 2022, Airtel Uganda had revenues, EBITDA and net income of UGX 1,594 billion, UGX 888 billion and UGX 326 billion, respectively. Airtel Uganda, previously Celtel Uganda Ltd, launched the country’s first mobile cellular network in 1995.
Following the acquisition by Airtel in June 2010, the business was rebranded Airtel Uganda.“The IPO gives preference to Ugandan investors, including the company’s customers, to own a share in Airtel Uganda and participate in its future growth. This is very much in line with one of our core values of customer-centricity," said Manoj Murali, managing director, Airtel Uganda. “We shall give 5 shares to retailers for every 100 that they buy," Hannington Karuhanga, board chairman, Airtel Uganda Ltd, said.Absa Bank
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