Government grants Airtel Uganda’s request to delay listing on securities exchange

The Uganda Communications Commission (UCC) has allowed Airtel Uganda to delay its listing on the stock exchange by a year.

The UCC public and international relations manager, Ms Rebecca Mukite, said Airtel Uganda applied for extension, which was granted.

She said Airtel Uganda said they were not ready for listing on the securities exchange in line with the law, citing unfavourable economic conditions.

“Much as its a license obligation, you don’t want a company to list when the market is not ready, otherwise their shares will be undersubscribed,” Mukite is quoted by Daily Monitor as saying.

“The extension was largely to do with the prevailing economic conditions, because of Covid-19, and the current economic situation globally, which has a local impact,”

Keith Kalyegira, chief executive officer OF Capital Markets Authority

The telecom was expected to list on the Uganda Securities Exchange by December 2022. Under the Uganda Communications (Fees & Fines) (Amendment) Regulations 2020, all telecoms are required to float 20 percent of their stake on the USE within two years of the date of a new licence or licence renewal. 

MTN was the first telecom to fulfil requirements of the National Broadband Policy through an initial public offering in which it attracted both local and regional investors.

Mr Keith Kalyegira, the chief executive officer of Capital Markets Authority (CMA), acknowledged the delay to list by Airtel.

“The extension was largely to do with the prevailing economic conditions, because of Covid-19, and the current economic situation globally, which has a local impact,” he is quoted by Daily Monitor as saying.