In a resounding financial endeavor, telecom services provider Airtel Uganda Ltd, a subsidiary under the aegis of Airtel Africa plc and helmed by billionaire Sunil Mittal, has laid out a grand design to procure a staggering $216 million via an initial public offering (IPO). The strategic move intends to relinquish up to a significant 20% ownership stake within the company.
Airtel Uganda has meticulously priced its debut IPO at 100 Ugandan shillings (UGX) per share, earmarking a substantial sum of 800 billion UGX for this capital-raising venture. The notable impetus for this offering aligns with regulatory requisites, compelling the company to be listed on the Uganda Securities Exchange by the 16th of December 2023.
Eager investors can engage in this opportunity commencing from Wednesday, with the window closing on the 13th of October. Subsequently, trading on the exchange will commence from the 31st of October.
Foray into the particulars, Airtel Uganda Limited, a seasoned player in the telecommunications realm since 1995, emerges as a formidable co-leader within the market, commanding a remarkable 49% revenue and securing a robust 47.3% market share in terms of subscribers. Its operational footprint extends across 146 districts in Uganda, serving an impressive 14.3 million active subscribers.
The financial contours for the year culminating on the 31st of December 2022 project revenues amounting to UGX 1,594 billion, alongside UGX 888 billion in EBITDA and a net income of UGX 326 billion.
The journey of Airtel Uganda, previously known as Celtel Uganda Limited, commenced with the inception of Uganda’s maiden mobile cellular network in 1995. The subsequent acquisition by Airtel in June 2010 paved the way for its rebranding.
Underscoring the IPO’s essence, Manoj Murali, the managing director of Airtel Uganda Ltd, emphasized that this initiative substantiates their customer-centric ethos. The IPO’s design incorporates a distinctive outreach to Ugandan investors, offering them an avenue to partake in Airtel Uganda’s prospective growth. Hannington Karuhanga, the board chairman of Airtel Uganda Ltd, elaborated on this sentiment, announcing the allocation of 5 shares for every 100 shares acquired by retailers.
The IPO proceedings are orchestrated under the aegis of Absa Bank Uganda Ltd., serving as the lead transaction adviser, and Crested Capital, assuming the mantle of the lead sponsoring broker.
