With the alluring prospect of providing a sizeable 20% interest in the company, Airtel Uganda has made a crucial step toward financial expansion by announcing its ambitions to undertake an Initial Public providing (IPO).
In addition to demonstrating Airtel’s confidence in its position in the competitive telecommunications industry, this brave step also highlights the growing appeal of public investment in a time of rapid technological advancement.
According to the operator, the offer will give preference to Ugandan investors, with a listing date of December 16 being the target date to meet National Telecommunications Operator (NTO) license criteria.
The effort will provide improved opportunities for the local populace to bolster their revenue streams through returns on investments, according to Nishant Mohan, the telecoms Finance Director, which will lead to the expansion of capital markets.
“The offer is expected to result in meaningful local ownership of Airtel Uganda Ltd, with preference being given to Ugandan investors, and to contribute to the development of the capital markets in Uganda,” Mohan claimed.
“This aligns with our core value of customer-centricity, and we believe the IPO will boost Airtel Uganda’s reputation across the continent,” he continued.
Contrary to its rival MTN Uganda, which finished listing its shares in 2021, Airtel was given a 12-month extension to list its shares after missing the first deadline in December of last year.
The shares will be offered to investors through both conventional channels and the Airtel Money platform, subject to permission from the Capital Markets Authority of Uganda.
Airtel has picked Absa Bank Uganda as its primary transaction advisor, while Crested Stocks and Securities Limited will serve as its primary sponsoring broker.
With a 49% revenue share and a 47.3% subscriber market share, Airtel Uganda, a company that has operated in the country of East Africa since 1995, is a co-leader in the industry. In Uganda, the firm has 14.3 million active members.
Airtel Uganda can operate and offer telecommunications services in the nation through June 30th 2040 after obtaining an NTO License on July 1st 2020. There is also the possibility of a ten-year renewal.
In 1995, Airtel Uganda, then known as Celtel Uganda Limited, launched the first mobile cellular network in the nation. Since June 2010, when it became Bharti Airtel Limited, the business has undergone a rebrand and coverage expansion. Its population is now 98.1% covered by 3G.
A subsidiary of Airtel Africa plc, which is listed on the London Stock Exchange, Airtel Uganda is a member of a pan-African company that operates in 14 countries, has over 140 million users, and is estimated to be worth $5.5 billion.
Financially speaking, Airtel Uganda recorded Sh1.59 trillion in revenues, Sh888 billion in EBITDA, and Sh326 billion in net income.
The decision to launch an IPO was made at a time when innovation, regulation, and consumer demand are dynamically interacting in Uganda’s telecom business.
As a prominent participant in this market, Airtel Uganda appears prepared to take advantage of the opportunity for public capital injection to strengthen its market position and quicken its trajectory of expansion and diversification.
Due to the fact that it highlights the shifting tides within the telecom industry, market analysts and business insiders are avidly scrutinizing the consequences of this strategic move.
A radical departure from the traditional standards of industry ownership and involvement, the move also creates a pathway for institutional and private investors to actively participate in the story of a telecom giant.
Airtel Uganda’s entry into the IPO market not only redefines its own trajectory but also resonates as a mirror of the larger metamorphosis taking place inside the telecom business, where technology breakthroughs are changing communication paradigms and rearranging industry dynamics.
Market participants and enthusiasts alike find themselves on the verge of a new chapter as the company sets off on its historic adventure. its new chapter is expected to rewrite the history of telecom in Uganda and beyond.
