More Africa NewsUganda: Airtel is finally ready for its IPO

August 11, 2023by myles0

According to the regulations in force in Uganda, Airtel Uganda was supposed to list part of its capital on the stock market before the end of 2022. The deadline was finally postponed, due to market conditions deemed unfavorable .

The telecom operator Airtel Uganda announced on Wednesday August 9 that it was ready to list part of its capital on the Ugandan Stock Exchange, in accordance with the regulations in force. The company intends to sell eight million existing ordinary shares representing 20% ​​of its capital.

The transaction, which should be completed by the end of the year, is subject to the approval of the Autorité des marchés financiers (CMA).

Once approved by the CMA, the shares will be offered to investors through both traditional channels and the Airtel Money platform, with the aim of increasing retail participation.

The opening of Airtel Uganda’s capital to the stock exchange is in line with the regulatory framework on telecoms introduced by the Ugandan government in 2018. It provides that any telecom operator wishing to operate on the national territory will have to introduce 20% of its capital on the local stock exchange, no later than two years after obtaining its operating license. Airtel, which obtained its national telecoms license in December 2020 for 74.6 million USD was supposed to be in good standing no later than December 15, 2022.

Airtel Uganda began preparations for listing on the stock exchange in January 2022, a month after the IPO of its competitor MTN Uganda. While the company was confident that it would be in good standing within the given time frame , it eventually applied for and was granted an extension of the deadline from the Uganda Communications Commission (UCC). The regulator considered that the market conditions were unfavorable to the continuation of the transaction.

“  The Offer gives preference to Ugandan investors, including the Company’s customers, to own a share of Airtel Uganda and participate in its future growth, and in doing so, Airtel Uganda is implementing one of its core values. customer centricity  ,” said Airtel Uganda.

Source: Agence Ecofin

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