Airtel Uganda to go public with 20 percent stake on offer
Airtel Uganda, a subsidiary of Airtel Africa, one of the leading mobile operators in Africa, has announced its intention to list its shares on the Uganda Securities Exchange (USE).
The company will conduct an initial public offering (IPO) of 8 billion ordinary shares, which represent 20 percent of its total issued share capital. The IPO will be open to both local and foreign investors, and will be subject to the approval of the Capital Markets Authority of Uganda (CMA).
Airtel Uganda: a brief overview
Airtel Uganda was established in 1995 as Celtel Uganda, and later rebranded as Zain Uganda in 2008. In 2010, it became part of Airtel Africa, after the latter acquired Zain’s African operations. Airtel Uganda offers a range of mobile services, such as voice, data, mobile money, and digital products, to over 14 million customers across the country.
Airtel Uganda is one of the leading players in the Ugandan telecom market, with a market share of about 35 percent. Airtel Uganda is also committed to social responsibility and sustainability, supporting various initiatives in education, health, sports, and culture.
Why invest in Airtel Uganda?
Airtel Uganda’s IPO is an opportunity for investors to participate in the growth and profitability of one of the most successful and innovative mobile operators in Uganda. Airtel Uganda has a strong brand recognition and customer loyalty, as well as a wide network coverage and service quality.
Airtel Uganda also has a diversified revenue stream and a robust financial performance, with a revenue growth of 12.6 percent and an EBITDA margin of 45.4 percent in the financial year ended March 31, 2021. Airtel Uganda also has a competitive edge in the mobile money segment, with over 10 million active users and over UGX 30 trillion (USD 8.4 billion) in transactions in the same period.
Airtel Uganda’s IPO will also provide investors with some unique benefits and features, such as the option to pay for the shares using Airtel Money, a convenient and secure mobile payment platform that allows users to send and receive money, pay bills, buy airtime, and access other financial services; The eligibility to receive dividends from Airtel Uganda’s profits, subject to the approval of the shareholders and the board of directors; The ability to trade the shares on the USE, which is the primary securities market in Uganda that facilitates the buying and selling of shares and other securities; And the potential to benefit from capital appreciation, as the share price may increase over time depending on the market conditions and demand.
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