Airtel Uganda, a subsidiary of Airtel Africa, has announced its intention to list 8 billion, or 20 per cent, of its ordinary shares on the Uganda Security Exchange (USE).
The public offer will be issued before the regulatory deadline of December 16.
The move is aimed at increasing local ownership and participation in the telecom sector, as well as contributing to the development of the capital markets in Uganda.
The telco has appointed Absa Bank Uganda Ltd. as a Lead Transaction Advisor, Crested Capital as a Lead Sponsoring Broker, Katende Ssempebwa and Company Advocates as Legal Advisor and Ernst & Young (EY) as Reporting Accountant for the offer.
The offer will be effected by way of an offer for the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., a wholly-owned subsidiary of Airtel Africa, who will receive all the proceeds of the offering, net of related expenses.
The offer is subject to the approval of the Prospectus by the Capital Markets Authority (CMA), which is expected to be issued soon.
Once approved, 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.
The telco said that preference will be given to Ugandan investors in the allocation of shares.
Airtel Uganda is seeking to comply with the government policy that requires telecom operators in the country to list at least 20 per cent of their shares on the local bourse within two years.
The policy was introduced in 2019 to encourage local ownership and empowerment in the telecom sector, which is dominated by multinationals such as MTN, Airtel, and Lycamobile.
Airtel Uganda is one of the leading telecom operators in the country, with over 15 million subscribers and a market share of 37 per cent.