Telecom services company Airtel Uganda Ltd, which is a subsidiary of Airtel Africa plc and is supported by billionaire Sunil Mittal, has disclosed its ambitious intention to generate 800 billion Ugandan shillings (about $216 million) through an initial public offering (IPO).
This manoeuvre was made public in a statement issued by the telecom company on Tuesday.
In preparation for its highly anticipated initial public offering (IPO), the business has set the price of each share of its stock at one hundred Ugandan shillings (UGX). Airtel Uganda intends to offer up to a twenty percent ownership, which is equal to eight billion shares, signifying a key milestone for the firm as it fulfils statutory regulations regulating its listing by the sixteenth of December.
Read also: Analysis of Airtel Africa’s shares within current economy
The initial public offering (IPO) will begin accepting participants on Wednesday, and it will continue accepting them until October 13 (the closing date). On the 31st of October, assuming everything goes according to plan, Airtel Uganda is scheduled to begin trading on the Uganda Securities Exchange.
Airtel Uganda has been offering mobile telecommunications services since 1995, which has helped the company solidify its position as a prominent participant in the Ugandan industry. The company now shares the co-leadership position with 49% of the revenue and 47.3% of the subscriber market share. The organisation is extremely happy to provide services to 14.3 million active customers located in 146 different regions of Uganda.
Airtel Uganda posted extremely remarkable financial results for the fiscal year that ended on December 31, 2022, including total sales of UGX 1,594 billion, EBITDA of UGX 888 billion, and net income of UGX 326 billion. The first mobile cellular network in Uganda was established by Airtel Uganda, which was originally known as Celtel Uganda Ltd., in 1995. This was the beginning of the trip. Following the company’s acquisition by Airtel in June of 2010, the company changed its name to Airtel Uganda and began operating under that name.
Airtel Uganda’s Managing Director, Manoj Murali, emphasised the IPO’s alignment with the company’s core values of customer-centricity. He noted that it extends preferential treatment to Ugandan investors and customers, offering them the opportunity to become stakeholders in Airtel Uganda and partake in the company’s future growth. Manoj Murali also emphasised the IPO’s alignment with the company’s core values of innovation and growth. According to Hannington Karuhanga, the Board Chairman of Airtel Uganda Ltd., the structure of the initial public offering is meant to reward merchants with 5 shares for every 100 they acquire. This was described by Karuhanga.
Absa Bank Uganda Ltd., as the main transaction adviser, and Crested Capital, as the primary sponsorship broker, have been instrumental in the success of the initial public offering (IPO).
About Airtel Uganda
Airtel Uganda Limited is an IT and mobile communications service company in Uganda. The business also provides banking and mobile money transfer services under the name Airtel Payments Bank. A division of Airtel Africa PLC is Airtel Uganda Limited.
On June 8, 2010, Bharti Airtel bought 16 Zain Africa businesses, allowing Airtel to enter the Ugandan market. In 2013, Airtel completed the full acquisition of Warid Telecom Uganda, marking the first-ever domestic acquisition in the telecom industry. With a combined subscriber base of more than 7.4 million and a market share of more than 39%, Airtel further solidified its position as the second-largest mobile operator in Uganda, trailing only MTN Uganda in terms of market share.
The telecom company reached the milestone of 10 million customers in 2018. This accomplishment solidified Airtel’s status as Uganda’s telecom with the fastest rate of growth. Airtel Uganda acquired 100% 4G LTE coverage across all of its locations in Uganda in January 2019, putting the country’s broadband agenda into practise. As of April 2020, the telecom owned more than 2,000 towers in Uganda.
Airtel makes investments in local ICT and telecom infrastructure, including mobile financial services platforms, core and transmission networks, and over 3,900 km of fibre throughout 95.9% of Uganda.