KAMPALA – Airtel Uganda Limited has announced its intention to proceed with an initial public offer of shs8,000,000,000 existing ordinary shares of the Company (the “Offer” and “Offer Shares”) representing 20% of the Company, and the expected publication of an offer document (“Prospectus”) approved by the Capital Markets Authority- Uganda. The Offer will be effected by way of an offer for sale by Bharti Airtel Uganda Holdings B.V.
The revelation was made by Hannington Karuhanga, Company Board Chairman flanked by Managing Director, manoj murali, and Nishant Mohan, Finance Director.
“Following completion of the Offer, and upon approval by the relevant authorities, Airtel Uganda will apply for the admission of its issued share capital to the Main Investment Market Segment of the Uganda Securities Exchange. All the proceeds of the Offer, net of related expenses, will accrue to Bharti Airtel Uganda as the Selling Shareholder,” he said.
“The Offer gives preference to Ugandan investors, including the Company’s customers, to own a share in Airtel Uganda and participate in its future growth, and in so doing, Airtel Uganda implements one of its core values of customer-centricity,” he added.
Murali said that Airtel Uganda having offered mobile telecommunications services in Uganda since 1995, Airtel is now a co-leader in the market with 49% revenue and 47.3% subscriber market share, respectively.
The Offer, and subsequent Listing (together with the “Transaction”), he said seeks to enhance Airtel Uganda’s profile across the continent. The Offer is undertaken in accordance with Regulation 9 (1) (a) of the Uganda Communications (Licensing) Regulations, 2019 and Schedule 1 of the Uganda Communications (Fees and Fines) (Amendment) Regulations, 2020.
Further, the Offer and the Listing are being undertaken in compliance with the provisions of Airtel Uganda’s National Telecommunications Operator License issued by the sector regulator, Uganda Communications Commission
The NTO License requires that Airtel Uganda comply with the telecommunication sector policy, regulations and guidelines which require the Company’s shares to be listed on a licensed stock exchange in Uganda. Airtel Uganda is required to comply with this listing obligation by 16 December 2023.
