Airtel Uganda Ltd. plans to raise as much as 800 billion shillings ($216 million) in an initial public offering (IPO), making it the nation’s biggest share sale.
The company priced its IPO at 100 shillings a piece valuing the nation’s second-biggest telecommunications carrier at 4 trillion shillings. The unit of billionaire Sunil Mittal’s Airtel Africa Plc is selling a 20 percent stake, or 8 billion shares, on the Uganda Securities Exchange to fulfil a regulatory requirement.
The offer opens on Wednesday and closes on October 13, according to a prospectus released in the capital, Kampala, on Tuesday. The company will start trading on the exchange on October 31.
Uganda has asked telecommunications companies to sell at least 20 percent on its bourse to increase local shareholding and deepen its capital markets. If Airtel Uganda reaches its IPO target, it will become Uganda’s biggest company by market value.
MTN Uganda Ltd., which listed in 2021, is worth 3.8 trillion shillings. Its IPO was under-subscribed, and it raised $150 million, about two-thirds of the target amount. Its share has lost 15 percent from the 200-shilling offer price.
Absa Bank Uganda Ltd. is the lead transaction adviser to the IPO, while Crested Capital is the lead sponsoring broker.
First Published: Aug 29, 2023 3:40 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM