Overview:
Speaking at the ringing of the bell on Tuesday, Hannington Karuhanga, the Airtel Uganda Board Chairman, said the telecom company is delighted to be listed on the USE and he hopes that people see Uganda as a proud destination to do business.
The bell was rang at the Uganda Securities Exchange on Tuesday, 07 November 2023, marking Airtel Uganda’s first trading day as a publicly listed company.
This comes a day after Airtel Uganda released results of its Initial Public Offering (IPO) on Monday, which indicated that it sold slightly more than half of the eight billion shares it floated on August 30, returning a 45.55 percent subscription. Airtel also indicated that it had realised Shs211.4b, representing a return of 26 percent.
Speaking at the ringing of the bell on Tuesday, Hannington Karuhanga, the Airtel Uganda Board Chairman, said the telecom company is delighted to be listed on the USE and he hopes that people see Uganda as a proud destination to do business.
“As a Ugandan, I am proud that we are now partners in this business which plays a central role in our lives. I am pleased to announce that with this listing, Airtel has fulfilled its obligations in the national telecom operator licence,” he said.
Mumba Kalifungwa, the Managing Director of Absa Bank Uganda, which was the telecom company’s lead transaction broker, welcomed the listing of Airtel as a great day for the Ugandan economy.
“I congratulate the Airtel team on this milestone event in the history of USE. As Absa Uganda, this IPO has reaffirmed our commitment to the growth of Uganda’s capital markets,” he said.
“Airtel Uganda forms a critical part of Uganda’s telecom industry and using Absa Uganda as a lead transaction broker tapped into our existing knowledge in the equity markets. We are part of Airtel’s story in Africa towards addressing societal challenges,” he added.
Robert Baldwin, CEO Crested Capital, also welcomed Airtel Uganda to the Securities Market.
“We now move to post listing. Now, it is the public that drives the narrative. I welcome Airtel Uganda and we hope for very good things to come,” he said.
On his part, Airtel Uganda Managing Director Manoj Murali said that the Bell Ringing Ceremony is a historic moment for this country and Airtel Uganda, a culmination of years of building for the company.
“We are proud that when we offered this company’s shares, many Ugandans came out to learn about Airtel Uganda and many took time to buy shares. We thank our partners for their contribution to this process,” he said.
Paul Bwiso, the CEO of USE, said that the listing of Airtel makes it the 19th listed company on the USE marking a UGX19.8 trillion capitalization.
Keith Kalyegira, the CEO of Capital Markets Authority, said that the listing of Airtel on the USE is a significant milestone because it underlines the confidence of investors in the Ugandan economy.
“The success of the IPO showcases the growing demand for potential investments in Uganda. It is a good indicator of what lies ahead and am confident of the pivotal role capital markets play in the development of the country and I welcome Airtel,” he said.
Dr Rachel Katorogo Mindra, the Chair of the Listing Committee on behalf of the Chair of CEO Mr Richard Karugaba, said that the listing has made drastic changes in the Ugandan economy including increased capitalisation, and an increased investor base.
“The Airtel listing brings the total capitalisation of USE to UGX 11 trillion which represents 6% of the country’s GDP. This was a fully electronic IPO. This continues our drive to have a paperless market in the country,” she said.
“The listing approval process is very elaborate. We are happy to note that Airtel met the listing eligibility criteria. We look forward to seeing bold actions from Airtel in Uganda’s growth journey,” she added.