Airtel Africa To List Shares Of Uganda’s Subsidiary At The Exchange For Local Ownership

Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa has announced that its wholly owned subsidiary in Uganda (Airtel Uganda Limited) intended to publish a prospectus and float shares on the Main Investment Market Segment of the Uganda Securities Exchange. Airtel Africa in a notice at the Nigerian Exchange said “Airtel Uganda Limited intends to proceed with an initial public offer of 8,000,000,000 ordinary shares, representing 20% of Airtel Uganda Limited.“The prospectus will be published following the approval of the Capital Markets Authority of Uganda (“CMA”).“Subject to approval of the Prospectus by the CMA, the offer will be effected by way of an offer for the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., ultimately, a wholly owned subsidiary of Airtel Africa, who will receive all the proceeds of the offering, net of related expenses.“The offer is expected to result in meaningful local ownership of Airtel Uganda Limited, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda.“Following approval of the Prospectus by the CMA, the shares will be offered to retail investors via Airtel Money’s platform, in addition to traditional channels, in an effort to increase retail participation.“As previously communicated, under Article 16 of Uganda’s National Telecom Operator (‘NTO’) licence, Airtel Uganda Limited is required to list at least 20% of its shares on the Uganda Securities Exchange. Airtel Uganda’s principal regulator, the Uganda Communications Commission has set a deadline of 16 December 2023 for meeting this requirement to list.