Airtel to float 8 billion shares on Uganda Securities Exchange 

Airtel Uganda has announced its intention to proceed with an initial offer of 8 billion existing ordinary shares of the company (the offer and offer shares) representing 20 per cent of the company and the expected publication of an offer document approved by the Capital Markets Authority of Uganda (CMA).

The offer will be effected by way of an offer sale by Bharti Airtel Uganda Holdings BV, ultimately a wholly owned subsidiary of Airtel Africa. Following the completion of the offer and upon approval by the relevant authorities, Airtel Uganda will apply for the admission of its issued share capital to the main investment market segment (MIMS) of the Uganda Security Exchange.

All proceeds of the offer-related expenses will accrue to Bharti Airtel Uganda as the selling shareholder. The offer gives preference to Ugandan investors including the company’s customers to own a share in Airtel Uganda and participate in its future growth. While announcing the offer in Kampala, Hannington Karuhanga, the chairman of Airtel Uganda said, “Listing the company on the Uganda Security Exchange would reaffirm our commitment to the country and its future development in which we are playing a key role. The services we provide are core to the country’s economic success and prosperity. Importantly, an Initial Public Offering (IPO) will allow the people of Uganda to share in our mission and its success.”

Airtel Uganda is required to comply with the listing obligation by December 16, 2023. Should the offer proceed, it is expected to include key features like; a public offer as defined in the Capital Markets Authority Act cap 84 aimed at retail, institutional and professional investors.

Airtel has appointed Absa Bank Uganda Ltd as the lead transaction adviser and Crested Stocks and Securities Limited as the lead sponsoring broker, Ssempebwa and Company Advocates as the legal adviser with Ernst and Young as reporting accountants.

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