Airtel’s Initial Public Offer ( IPO) is now open in Uganda. Airtel Uganda values its whole Business at over 1 Billion USD. For this sale to the public, the company is offering 20 Percent of its shares to Ugandans.
Airtel Uganda IPO hopes to raise 800 billion Uganda shillings (215,827,200 USD at current exchange rate). 1 Share is Ugx100.00 (Ksh 3.93 at current exchange rate). Moreover, the minimum number of shares one can buy is 2,500. This means an investor needs a minimum of 250,000 Uganda shillings to apply for the shares.
The Airtel IPO runs from 30th August to 13th October 2023. Importantly, the 20% share sale is fulfilment of requirements under the National Telecommunication Operator’s license acquired in 2021.
Two years ago, MTN Uganda was the first telecom to float its shares in the country. This makes Airtel Uganda, the second telco to do so. However, the MTN IPO was undersubscribed. This was attributed to a weak economy due to the COVID19 pandemic and high inflation.
Paul Bwiso, Uganda Stock Exchange (USE) CEO was quick to comment on the good trends witnessed in the market. He noted that some equities are realising rising share prices and returns on investments.
Airtel believes public investing in the company be a game changer in the Africa telecom industry. “We believe the IPO will enhance Airtel Uganda’s profile across Africa” : said Manoj Murali, Managing Director at Airtel Uganda.
IPO Handled by Crested Capital
Airtel users can invest directly through their mobile phones. By dialing *185*85# on an Airtel Line, prompts will lead investors through the process. Notably, investors are encouraged to read the investment prospectus to understand all the terms and conditions.
The Airtel Uganda IPO is managed by Crested Capital. This is a Ugandan financial services firm providing investment advice, brokerage services and investor education.
Airtel Uganda expects to pay dividends of 500 billion Uganda shillings this year. The company made a pre-tax profit of 474 billion shillings last year which was a drop from the 565 billion the previous year.
