A total of 4614 people in Uganda have become shareholders in telecom company, Airtel Uganda after the conclusion of the company’s Initial Public Offer (IPO).
On Tuesday, Airtel has officially become the second telecom company to list on Uganda’s Security Exchange after listing eight billion ordinary shares which is 20% of its shares on the country’s stock market.
The company however realized shs211.4 billion which is a return of 26 per cent, lower than the targeted shs800 billion during the offer which has been running since August, 30.
Of the eight billion shares allocated by Airtel Uganda, 4.36 billion representing 54.45 percent of the offer were subscribed.
Each of the share went for shs100.
The development means that National Social Security Fund that bought shares worth shs199 billion is the second biggest shareholder in Airtel Uganda after Bharti Airtel.
Speaking on Tuesday, Keith Kalyegira, the Capital Markets Authority CEO hailed Airtel Uganda for the great milestone.
“This is a significant milestone and shows the growth of confidence for investors in Uganda’s economy. This is an opportunity for the public to invest in this fast-growing telecom company. This opens the demand for investment opportunities in Uganda,”Kalyegira said.
He said the listing brings Uganda’s total market capitalization to shs11 trillion and represents 6% of the total GDP that he said is pleasant milestone.
“This achievement is not only a win for Airtel Uganda but also a testament for Uganda capital markets as an investment destination.”
Paul Bwiso, the USE Chief Executive Officer said during the Airtel Uganda IPO, a total of 7000 Securities Central Depository(SCD) accounts were opened by investors.
Airtel Uganda Managing Director, Manoj Murali said the listing is a great milestone in the life of the telecom company.
“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.”
During the exercise, Absa Bank Uganda was the transaction adviser while Crested Capital acted as the lead sponsoring broker
The development means Airtel is the 19th company to list on the Uganda Securities Exchange.
Joining the Ugandan market as Celtel Uganda in 1995, Airtel was the country’s first mobile cellular network and has grown by leaps and bounds.
As of December, 31, 2022, Airtel Uganda had revenues, EBITDA and net income of shs1.59 trillion, shs 888 billion and shs 326 billion respectively.