Airtel Uganda set to strengthen its structure on Uganda Stock Exchange
By Felicia Nwosu
To strengthen its structure and value, Airtel Uganda Limited has announced a strategic plan to enlist its subsidiary, Airtel Uganda Limited on Uganda Stock Exchange.
It has also disclosed plans to proceed with an initial public offer of 8,000,000,000 existing ordinary shares of Airtel Uganda, representing 20% of the Company.
The leading telecommunications company revealed this giant stride on its Airtel Uganda LinkedIn page, attesting to its readiness to publish a prospectus and float shares on the Main Investment Market Segment of the Uganda Securities Exchange. It noted that the expected publication of an offer document (“Prospectus”) was approved by the Capital Markets Authority of Uganda.
According to Airtel, the offer will be affected by way of an offer for sale by Bharti Airtel Uganda Holdings B.V., which ultimately, is a wholly owned subsidiary of Airtel Africa plc.
Hannington Karuhanga, the Board Chairman made the announcement, surrounded by his team which included Manoj Murali, the Managing Director, and Nishant Mohan, its Finance Director at its Head Office on Clement Hill.
Karuhanga said following the 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. He also added that all the proceeds of the Offer, net of related expenses, will accrue to Bharti Airtel Uganda as the Selling Shareholder.
The Board Chairman explained that 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.
Expressing his excitement over the company’s new corporate journey while underscoring some of the conditions attached to the new status during the “Intention to Float” Manoj Murali, , the Managing Director, 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 Airtel boss affirmed that the Offer, and subsequent Listing, together with the “Transaction”, seeks to enhance Airtel Uganda’s profile across the continent.
Furthermore, he maintained that 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.
Murali Further, said 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, which is Uganda Communication Commission.
Meanwhile, he confirmed that 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. While admitting that Airtel Uganda is required to comply with this listing obligation by 16 December 2023.
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