Airtel Uganda set to list on the Uganda Stock Exchange

The telecom company, which is completely owned by Airtel Africa plc, is set to publish the offer document that has been approved by the Capital Markets Authority, paving the way for the Initial Public Offering (IPO).

Airtel Uganda’s move is in accordance with the terms and conditions of its National Telecommunications Operator (NTO) licence, which was awarded in 2020 in response to the Uganda Communications Commission's (UCC) new licencing rules.

The Airtel Finance Director, Nishant Mohan, said that the Initial Public Offering, which is expected to go live on December 16th, will provide Ugandans with preferential treatment.

In 2020, UCC published revised rules for the National Telecommunications Operators Licence under the Uganda Communications (Licencing) Regulations 2019 and later the Uganda Communications (Fees and Fines) (Amendment) Regulations 2020, in response to a Cabinet request.

As part of the governance and national economic contribution function, they called for the sale of at least 20% of the corporation to the public.

It is the second business to go public under the new norms and guidelines, having missed the 60-day deadline for listing after receiving the NTO licence.

The managing director of Airtel Uganda, Majoj Murali, said that while they are constrained in how much information they can share with the public due to capital market laws, they remain optimistic about the industry.

MTN Uganda's 22.5 billion-share IPO in December 2021 was the first by an NTO, and while it was deemed successful, there was a 36% undersubscription.

This was attributed to a somewhat unfavourable social media campaign that decreased interest in the shares, particularly among Ugandans.

The chairperson of the Airtel Board, Hannington Karuhanga, advised Ugandans, particularly the youth, to diversify their savings into equities rather than abandoning the market to foreign investors, which will also contribute more to the economy's development.