Airtel Uganda disclosed the details of its initial public offering (IPO) two weeks after announcing plans to sell its shares to the general public on the Uganda Securities Exchange.
By selling 8 billion ordinary shares, or 20% of its equity, on the Main Investment Market Segment, Airtel Uganda hopes to raise USh 800 billion ($216 million) to fund its expansion plans.
The company informed the Uganda Securities Exchange that the price for its IPO will be USh 100 per share. It will also give retailers five shares for every 100 they purchase.
The telco will sell common shares as part of the IPO and receive the net proceeds of the offering after deducting costs.
Manoj Murali, Managing Director of Airtel Uganda, stated that the IPO allows Ugandan investors, including customers, to own a stake in the company and participate in its future growth.
The IPO's principal sponsoring broker is Crested Capital, and its lead transaction adviser is Absa Bank Uganda Ltd.
Airtel received a one-year extension after its inability to list its shares by December last year. So, the Uganda Communications Commission (UCC) gave a deadline of December 16, 2023, to fulfil the requirement. The IPO complies with regulatory demands that the company list by then.
Murali announced that the 8 billion share offering would start on August 30, 2023, and end on October 13, 2023.
Per a prospectus, the IPO's results will be revealed on October 30, and the company will start trading on the Uganda Stock Exchange the following day, on October 31, 2023.
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The telco, which has 14.3 million active subscribers spread across 146 districts in Uganda, will become the second telecommunications company listed on the Ugandan stock exchange once its listing is complete, following MTN Uganda, which is majority-owned by the South African MTN Group and was listed in December 2021.
