In an exciting move that’s set to make waves in the telecom industry, Airtel Uganda Ltd, a prominent telecom services provider backed by billionaire Sunil Mittal, and a subsidiary of Airtel Africa plc, has revealed its plans to initiate an initial public offering (IPO) aimed at raising an impressive $216 million (800 billion Ugandan shillings). This strategic move was announced through an official statement released on Tuesday, catching the attention of investors and industry insiders alike.
Seizing Opportunities: Airtel Uganda’s Landmark IPO
Airtel Uganda has meticulously set the IPO price per share at 100 Ugandan shillings (UGX), with an intention to offer up to 20% ownership stake, equating to 8 billion shares, to prospective investors. This notable development aligns perfectly with regulatory obligations, mandating the company’s listing by December 16, 2023.
Countdown to the Future: Important Dates for Investors
As anticipation builds, potential investors will be pleased to note the timeline of events. The IPO, slated to open on Wednesday, promises a window of opportunity until October 13 for interested parties to participate. Following the closure of the offer, trading of Airtel Uganda shares on the exchange is scheduled to commence on October 31, ushering in a new phase for the telecom company.
Airtel Uganda’s Impactful Presence
With a history dating back to 1995, Airtel Uganda Limited has left an indelible mark on the country’s mobile telecommunications landscape. It proudly holds a co-leading position in the market, boasting an impressive 49% revenue share and a subscriber market share of 47.3%. The company’s services extend across 146 districts in Uganda, serving an active subscriber base of 14.3 million.
Financial Insights: A Closer Look
Airtel Uganda’s financial performance for the fiscal year ending on December 31, 2022, reflects its strong standing. The company reported noteworthy revenues of UGX 1,594 billion, coupled with EBITDA and net income figures of UGX 888 billion and UGX 326 billion, respectively.
The Path Forward: Airtel Uganda’s Vision
Airtel Uganda’s journey has been one of evolution and progress. Formerly known as Celtel Uganda Limited, the company introduced Uganda’s maiden mobile cellular network back in 1995. Following its acquisition by Airtel in June 2010, the business underwent a rebranding initiative, emerging as Airtel Uganda and solidifying its position in the market.
Inclusive Growth: Prioritizing Ugandan Investors
Airtel Uganda IPO places a distinct emphasis on involving Ugandan investors, including the company’s valued customers, in its future trajectory. This strategic approach reflects the company’s commitment to customer-centric values, with the IPO serving as an opportunity for investors to participate in Airtel Uganda’s continued growth.
Empowering Investors: Special Offer for Retailers
Excitingly, Airtel Uganda’s IPO extends a special offer to retailers. For every 100 shares purchased, retailers will receive an additional 5 shares, further enhancing the appeal and accessibility of this investment opportunity.
Guiding the Journey: Airtel Uganda’s Partners
Airtel Uganda’s IPO journey is guided by seasoned experts. Absa Bank Uganda Ltd. takes on the role of the lead transaction adviser, while Crested Capital assumes the position of the lead sponsoring broker.
About Airtel Uganda:
Airtel Uganda Limited functions as a provider of mobile communication and information technology services within Uganda. Additionally, it extends its offerings to encompass mobile financial transfers and banking solutions under the title of Airtel Payments Bank. This entity operates as a subordinate under the umbrella of Airtel Africa PLC.
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