Airtel Uganda extends deadline for Initial Public Offering

Airtel Uganda has extended the deadline at which the public can buy shares from the telecom company.

The initial closing date of the Initial Public Offering (IPO) of 8 Billion shares was meant to close today, Friday, 13 October 2023, while the announcement of allocation results was due on October 30 and then commencement of trading on the securities exchange on October 31.

But in a statement, Airtel Uganda has now extended the IPO closing date to October 27, 2023, while the announcement of allocation results and listing on the securities exchange will take place on November 6 and 7, respectively.

“The revised offer timetable automatically amends any reference to the offer date and listing date in the prospectus.

The offer price, offer shares and other terms and conditions of the offer remain unchanged as contained in the Prospectus published on 29 August 2023. This announcement has been approved by the CMA,” the telecom company added.

Airtel Uganda Ltd, a subsidiary of Airtel Africa plc, hopes to raise Shs800 billion in an initial public offering (IPO). The company set the price for its initial public offering (IPO) at Shs100 per share and will offer up to 20% stake or 8 billion shares.

Meanwhile, more companies and individuals continue to buy shares from the company. On Thursday, Buddu CBS PEWOSA Sacco and Kyadondo CBS PEWOSA Sacco, which are affiliated to Buganda Kingdom bought shares worth UGX 1 billion and UGX 10 million, respectively.

Speaking at the event at Bulange, Mengo, Katikkiro Charles Peter Mayiga said currently, the investment from Buganda Kingdom and affiliates in Airtel IPO is UGX1.210b

He also said that the IPO presents a new market-open opportunity for investors in Buganda.

“It is very pleasing to hear when you render advice and people pick it. After the breakfast Business meeting, our affiliates chose this path to make investments with Airtel Uganda. Our mantra with our CBS PEWOSA SACCOs is to save and invest,” the Katikkiro said.

“Companies affiliated with the kingdom need to invest. We are averse to handouts as a solution, and it brings us a lot of joy when our affiliates are investing,” he added.

The Airtel Uganda Managing Director, Manoj Murali, expressed gratitude to the SACCOS for their investment, and thanked them for their trust.

“We too, are committed to not only providing the most affordable telecom service but also sharing in the transformation of our people. The investment you have made today is strong, empowering and a shared route to prosperity,” he said.

The IPO also fulfils regulatory requirements under which the company has to mandatorily list by 16 December 2023. The offer opened on August 30 and will close on October 13.

Airtel Uganda Limited has offered mobile telecommunications services in the country since 1995 and is currently the co-leader in the market with 49% revenue, and 47.3% subscriber market share, respectively.

The telecom company has 14.3 million active subscribers across 146 districts countrywide.

Absa Bank Uganda Ltd is the lead transaction adviser to the IPO, while Crested Capital is the lead sponsoring broker.

In 2021, MTN Uganda conducted an initial public offering on the Ugandan stock exchange, generating Shs535.94 billion. This amount fell short of its initial target, amounting to less than two-thirds of the projected goal. The offering saw the allocation of approximately 2.9 billion shares from the total of 4.5 billion shares that were made available.