Airtel Uganda goes public as IPO falls short of expectations
Nov 06, 2023
The public offering commenced on August 30, 2023, with the offer price set at sh100 per share, accompanied by incentives for investors. The full details and outcome of the IPO will be disclosed on November 7.
Manoj murali, Airtel Uganda’s Managing Director making his remarks at the launch of a new brand campaign focused on building a deeper emotional connection with Africa’s youth. (File Photo)
Ali Twaha
Journalist @New Vision
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Airtel Uganda, the second-largest telecom operator, is set to officially join the Uganda Securities Exchange tomorrow (November 7). The results of the Initial Public Offering (IPO), announced on Monday, revealed that the telecom raised slightly over sh211b, achieving a subscription rate of 54.45%, significantly lower than the anticipated sh800b.
During the IPO, the telecom offered 20% of its shares, equivalent to eight billion ordinary shares, to the public. It received applications for slightly over 4.3 billion shares from 4,614 applicants, Airtel said in a statement.
Airtel Uganda's listing will mark the 11th firm to be listed on the exchange. The National Social Security Fund (NSSF) applied for a 10.55% stake, equivalent to sh199 billion, in Airtel Uganda Limited, while retail investors hold only 0.34%.
The public offering commenced on August 30, 2023, with the offer price set at sh100 per share, accompanied by incentives for investors. The full details and outcome of the IPO will be disclosed on November 7.
In 2021, NSSF acquired about 1.9 billion shares during the MTN IPO, representing an 8.84% stake in the telecom firm. The MTN IPO achieved a 65% subscription rate.
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