Airtel, a leading mobile network operator in Nigeria which has 26.8 percent mobile telephone market share and 46.8 million subscribers, according to the subscribers statistics released by the Nigerian Communications Commission (NCC), has announced it will float the shares of its subsidiary in Uganda on the Uganda Securities Exchange.
The telecoms giant made the disclosure through a release to the Nigeria Exchange Group that its wholly owned subsidiary in Uganda (Airtel Uganda Limited) will float shares on the Main Investment Market Segment of the Uganda Securities Exchange.
Airtel Uganda Limited intends to proceed with an initial public offer of 8,000,000,000 ordinary shares, representing 20 percent of Airtel Uganda Limited.
According to the company, “The prospectus will be published following the approval of the Capital Markets Authority of Uganda (CMA).”
Airtel further stated that “Subject to approval of the Prospectus by the CMA, the offer will be effected 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, who will receive all the proceeds of the offering, net of related expenses. 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.
“Also, 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, in an effort to increase retail participation. As previously communicated, under Article 16 of Uganda’s National Telecom Operator (‘NTO’) licence, Airtel Uganda Limited is required to list at least 20% of its shares on the Uganda Securities Exchange.
“A deadline of 16 December 2023 has been set for meeting this requirement to list by the Airtel Uganda’s principal regulator and the Uganda Communications Commission.
“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.”
