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).
Airtel is a name that links millions of people in India with millions of people all over the world. This telecom juggernaut is currently one of the most reputable brands in the industry.
Nothing short of remarkable can be said about the company’s modest journey from a regional operator restricted to the city of Delhi to the second biggest mobile provider in the Asia Pacific region.
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 criteria 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 users.
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, then 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.
“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, of Airtel Uganda Ltd.
“We shall give 5 shares to retailers for every 100 that they buy,” Hannington Karuhanga, board chairman, of Airtel Uganda Ltd, said.
The primary sponsoring broker for the IPO is Crested Capital, and the lead transaction adviser is Absa Bank Uganda Ltd.
