Airtel Africa, a leading telecommunications company has announced that its wholly owned subsidiary in Uganda (Airtel Uganda Limited) would be listed on the Main Investment Market Segment of the Uganda Securities Exchange.
This was announced in a corporate action filed with the Nigerian Exchange.
An excerpt from the official statement, which was signed by Group Company Secretary, Simon O’Hara reads:
“Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that its wholly owned subsidiary in Uganda (Airtel Uganda Limited) has announced the intention to publish a prospectus and float shares on the Main Investment Market Segment of the Uganda Securities Exchange.”
Airtel Uganda Limited is set to initiate an initial public offer (IPO) of 8,000,000,000 ordinary shares, which represents 20% of the company.
This move is aimed at meeting regulatory requirements and enhancing local ownership. The actual publication of the prospectus is subject to approval from the Capital Markets Authority of Uganda (CMA).
The company also noted that pending approval of the dealings from Uganda’s Capital Market Authority, the share offer will involve the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., a wholly-owned subsidiary of Airtel Africa.
The proceeds from this offering, net of associated expenses, will be directed to Airtel Africa.
Airtel Africa noted that the IPO aims to increase meaningful local ownership of Airtel Uganda Limited and preference will be given to Ugandan investors, which would help in contributing to the growth of the capital markets in Uganda.
Once the CMA approves the Prospectus, the shares will be accessible to retail investors through Airtel Money’s platform, along with traditional channels, fostering wider retail participation.
“Following approval of the Prospectus by the CMA, the shares will be offered to retail investors via Airtel Money’s platform, in addition to traditional channels, to increase retail participation.”
“As previously communicated, under Article 16 of Uganda’s National Telecom Operator (‘NTO’) license, Airtel Uganda Limited is required to list at least 20% of its shares on the Uganda Securities Exchange.”
“Airtel Uganda’s principal regulator, the Uganda Communications Commission has set a deadline of 16 December 2023 for meeting this requirement to list.”
To facilitate the IPO, Absa Bank Uganda Limited was appointed to serve as the Lead Transaction Advisor, Crested Capital would serve as the Lead Sponsoring Broker, Katende Ssempebwa and Company Advocates will act as the Legal Advisor, and EY will take on the role of the Reporting Accountant.