Airtel Africa has announced its plans to list on the Uganda Securities Exchange with 8,000,000,000  worth of shares 

According to a statement published on the Nigerian Exchange Group (NGX), Airtel Africa has announced plans to list shares on the Uganda Securities Exchange. It will do this through its wholly owned subsidiary in Uganda, Airtel Uganda Limited. 

The telco intends to proceed with an IPO of 8,000,000,000 (8bn) ordinary shares which represent 20% of Airtel Uganda Limited. Under article 16 of Uganda’s National Telecom Operator rules, 20% is the minimum requirement for listing on the stock exchange.  Similarly, Airtel Uganda’s principal regulator, the Uganda Communications Commission has set a deadline of 16 December 2023 for meeting this requirement to list.

“The offer is expected to result in meaningful local ownership of Airtel Uganda Limited, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda,” a statement from the telco read. 

Airtel would be listing these shares by way of an offer for the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., ultimately, a wholly owned subsidiary of Airtel Africa. Also, it will be offered to retail investors via Airtel Money’s platform, in addition to traditional channels, in an effort to increase retail participation. All of these moves are subject to regulatory approvals. “

Absa Bank Uganda Limited have been appointed as Lead Transaction Advisor, Crested Capital as Lead Sponsoring Broker, Katende Ssempebwa and Company Advocates as the Legal Advisor, and EY as the Reporting Accountant.

A fight to the finish

Airtel’s move to deepen its reach in Uganda is a means to compete with fellow telecom giant, MTN. On, July 28, MTN offered 5G services in Uganda, while Airtel followed days later. In Nigeria, MTN Nigeria congratulated Airtel on its 5G launch via a cryptic post on social media. Coming from a shoddy Q1 performance in Nigeria, Airtel would be looking at other markets to deepen its roots. 

Joseph Olaoluwa Senior Reporter, TechCabal

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