Airtel Uganda listed 4.36 billion shares on the Uganda Securities Exchange (USE) on Tuesday, after selling 54.45 per cent of the 8 billion shares offered in its initial public offering (IPO).
The telco’s IPO failed to meet its target, despite extending the closing date by two weeks.
The company announced on Monday that it sold only 54.45 per cent of the 8 billion shares offered in the IPO, raising Shs211.4bn ($56mn) out of an expected Shs386bn ($103mn).
The IPO attracted 4,614 investors, mostly retail investors who bought shares through incentives.
Airtel doubled the shares for both ordinary Ugandans and institutions during the IPO and offered retail investors shares at Shs47 instead of Shs100.
We’re thrilled to announce that #AirtelIPO shares are now allotted and trading in shares of Airtel Uganda Ltd on the Uganda Securities Exchange will start tomorrow at 9.30AM.
For more information, visit https://t.co/jJlXyjqD0k
Thank you for your support! pic.twitter.com/U9scmcJaOR
— Airtel Uganda (@Airtel_Ug) November 6, 2023
Airtel’s IPO performance was disappointing compared to MTN Uganda’s IPO in 2021, which sold 60 per cent of its shares and raised Shs536bn ($143mn).
The IPO raised Shs211 billion, which will be used to fund capital expenditure and operating infrastructure.
@AirtelUGMD: We are proud that when we offered this company’s shares, many Ugandans came out to learn about Airtel Uganda and many took time to buy shares. We thank our partners for their contribution to this process.#InvestInUganda #AirtelIPO pic.twitter.com/RyUtW5TZO7
— Airtel Uganda (@Airtel_Ug) November 7, 2023
Airtel is the second telecom to go public after MTN Uganda in 2021, as part of the new license requirement to list 20 per cent of their stake in Uganda.
Airtel’s listing increased the total market capitalization of Uganda to Shs11 trillion, or 6 per cent of the GDP.