Airtel Uganda to sell shares left over from 2023 IPO

AFRICAN STOCKS AND FINANCEJuly 12, 2024 at 3:12 PM UTC

TLDR

Airtel Uganda to sell remaining shares from undersubscribed IPO to meet regulatory requirements.
Telco sold only 54.45% of 8 billion shares in the 2023 IPO.
Company plans compliance with Uganda's broadband policy by November 2026.

Airtel Uganda has said it will sell the remaining shares from its undersubscribed initial public offering (IPO) to meet regulatory requirements.

In 2023, the telco sold only 54.45% of the 8 billion shares in an IPO aimed at raising USh800 billion ($216.22 million). Uganda's broadband policy mandates that telcos publicly list at least 20% of their equity on the local stock exchange.

David Birungi, Airtel Uganda's spokesperson, emphasized the company's commitment to adhering to national regulations. The company plans to achieve compliance by November 2026, within a two-year timeframe.

Key Takeaways

With over 14 million active subscribers spread across 146 districts in Uganda, Airtel Uganda has become the second telecommunications company listed on the Ugandan stock exchange, following MTN Uganda, which is majority-owned by the South African MTN Group and was listed in December 2021. Airtel, which entered the Ugandan market as Celtel Uganda in 1995, was the country’s pioneer mobile cellular network and has grown swiftly. The IPO is part of Airtel Uganda’s strategy to bolster its financial position and expand its operations across the country. Through the funds raised from the IPO, the company intends to upgrade its network infrastructure, improve service quality, and introduce innovative products to meet the evolving needs of its customers.

Airtel

Telecommunications

IPO

Stocks

Uganda

Airtel Uganda

Capital Markets

Mobile Network Operator

Airtel Africa

Finance