Airtel Uganda Ltd., a subsidiary of Airtel Africa controlled by Indian billionaire Sunil Mittal, plans to raise as much as 800 billion shillings ($216 million) in an initial public offering, making it the largest share sale in the nation.
The company has set the price of its initial public offering at 100 shillings per share, valuing the nation’s second-largest telecommunications carrier at 4 trillion shillings. Airtel Africa Plc, led by Mittal, is divesting a 20-percent stake, equivalent to 8 billion shares, on the Uganda Securities Exchange to meet regulatory requirements.
According to a prospectus released in Kampala, the capital city, on Tuesday, the offering will commence on Wednesday and conclude on Oct. 13. Trading of the company’s shares on the exchange is scheduled to begin on Oct. 31.
Uganda has mandated telecommunications companies list at least 20 percent of their shares on the local bourse, aiming to enhance domestic ownership and deepen capital markets. If Airtel Uganda achieves its IPO target, it will surpass MTN Uganda Ltd. as the country’s largest company by market value. MTN Uganda Ltd, listed in 2021, currently holds a value of 3.8 trillion shillings. Its initial public offering needed to be more subscribed, raising $150 million, approximately two-thirds of the intended amount. Its share price has since declined by 15 percent from the initial offer price of 200 shillings.
Airtel Uganda competes fiercely with South African telecoms giant MTN in Uganda. Airtel boasts of 14.3 million active subscribers across 146 districts in Uganda.
Absa Bank Uganda Ltd. will serve as the primary transaction advisor for the IPO, with Crested Capital acting as the principal sponsoring broker.
Bharti Airtel, led by Mittal, is one of India’s foremost mobile phone operators, boasting a customer base exceeding 474 million across several countries.
