Airtel Uganda is set to make a significant move in the financial market. The telecom giant, Airtel Africa, has revealed its intention to make its mark on the Uganda Securities Exchange by listing a staggering 8 billion ordinary shares. This move translates to a 20% stake in Airtel Uganda Limited.
The decision aligns with Uganda’s National Telecom Operator regulations, which mandate a minimum 20% listing on the stock exchange. The Uganda Communications Commission, the telco’s primary regulatory body, has set a deadline of December 16, 2023, for this listing requirement to be met.
The essence of this offer is twofold. Firstly, it aims to foster significant local ownership of Airtel Uganda Limited, with a particular emphasis on prioritizing Ugandan investors. Secondly, it seeks to bolster the growth of Uganda’s capital markets.
The shares will be listed through an offer for sale by Bharti Airtel Uganda Holdings B.V., a fully-owned subsidiary of Airtel Africa. In a bid to enhance retail participation, these shares will be available to retail investors not only through traditional means but also via the Airtel Money platform.
However, this initiative is contingent upon receiving the necessary regulatory approvals.
Several key players are involved in facilitating this move. Absa Bank Uganda Limited will act as the Lead Transaction Advisor, Crested Capital will serve as the Lead Sponsoring Broker, Katende Ssempebwa and Company Advocates will provide legal counsel, and EY will function as the Reporting Accountant.
This strategic decision by Airtel is seen as a competitive move against its rival, MTN. Notably, MTN recently launched its 5G services in Uganda, with Airtel following suit shortly after.
Read About: Airtel Uganda launches its API for cashless payments
