Airtel Uganda, will today, August 30th 2023, at 10 am, begin selling 8 billion shares (20% of the issued 40 billion shares) for UGX100 each, also known as IPO, in a sale expected to fetch the original shareholders- a handsome UGX800 billion.
The offer price values the company, which doesn’t include Airtel Mobile Commerce Limited (AMCUL), at UGX4 trillion.
The offer shall close on 13th October 2023 at 0400pm. Results of the allocation shall be announced on 30th October 2023 at 04:00 pm and thereafter the company shall on 31st October 2023, list the entire 40 billion shares on the Main Investment Market Segment of the Uganda Securities Exchange (USE).
Admission to listing, bell-ringing, and commencement of trading on the USE shall take place at 0930 a.m. Dispatch of SCD Account statements, showing how much shareholding is held per buyer as well as the refund of excess application funds, if required shall take place on the same day at 04:30 pm.
The telco which has been present in Uganda since 1995 and is the second largest with a close-to-call 49% revenue share and 47.3% subscriber market share, respectively.
According to Manoji Murali, the company’s Managing Director, Airtel Uganda has 13.8 million active subscribers across 146 districts in Uganda and is as well part of a larger and solid pan-African telco ecosystem.
“Airtel Uganda is part of the Airtel Africa group which, in turn, is part of the Bharti Airtel Group. This makes us a key part of a pan-African business operating across 14 countries, comprising over 140 million subscribers and which has a market capitalization of USD$5.5 billion on the London Stock Exchange,” he told stakeholders at the launch of the company prospectus.
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“It also means that we benefit from the skills and capabilities within the Bharti Airtel Group, the second largest telecommunications operator globally, which has 518 million customers and a market capitalisation of over USD64.3 billion,” he added.
Financially, he said the company is performing well.
“For the year ended 31 December 2022, Airtel Uganda had revenues, EBITDA and Net Income of UGX 1.594 trillion, UGX868 billion and UGX 326 billion, respectively,” he said adding: “The scale and progression of Airtel Uganda’s growth, and the exciting prospects for the Ugandan economy, have set the stage for this IPO, the completion of which will fulfil the requirement that the company lists on the USE by the end of this year”.
The company has also been profitable for the last 5 years and beyond. According to released financials, the company made a net profit of UGX268 billion, UGX216 billion, UGX277 billion, UGX393 billion and UGX326 billion for 2018, 2019, 2020, 2021 and 2022 respectively. This was against gross revenues of UGX1 trillion, UGX1.087 trillion, UGX1.294 trillion, UGX1.505 trillion and UGX1.594 trillion respectively.
To participate in the IPO, every proactive investor must have an SCD Account. For details on how to open an SCD account, please visit the Airtel Uganda website to download the prospectus or speak to your broker.
