Airtel Uganda starts trading as a public company

Airtel Uganda on Tuesday started trading as a public company after being listed at the Uganda Securities Exchange. This means individuals and other companies can buy shares in the telecom company which has been operating in the country since 1995.

Hannington Karuhanga, Airtel Uganda board chairperson, said the listing presented opportunities for investors to see Uganda as a proud destination to do business. “I am pleased to announce that with this listing, Airtel has fulfilled its obligations in the national telecom operator licence,” Karuhanga said.

Airtel Uganda explained that the listing came after more than a month of Initial Public Offer.

“The Offer opened on August 30, 2023, and closed October 27, 2023 and was conducted by way of an offer for sale of 8 billion existing ordinary shares of the Company at an offer price of UGX 100 (0.026 United States Dollar) per share,” the telecom said. The 8 billion shares represent 20% of the company.

According to Airtel Uganda, 4,355,902,835 shares had already been bought, which reflects a 54.45% of the offered shares.

Airtel Uganda Managing Director Manoj Murali said the development was a result of years of building the company in the country.

“We are proud that when we offered this company’s shares, many Ugandans came out to learn about Airtel Uganda and many took time to buy shares,” Murali said.

Airtel Uganda, a subsidiary of Airtel Africa plc, has been operating in Uganda for nearly twenty years. It is currently the co-leader in the market with 49% revenue, and 47.3% subscriber market share.

Airtel said 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.”

The Offer, and subsequent Listing (together the “Transaction”), seeks to enhance Airtel Uganda’s profile across the continent.

“The development 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,” the telecom giant said.

Airtel Uganda follows in the footsteps of MTN Uganda which listed 22.4 billion ordinary shares on the USE in December 2021.

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