Airtel Uganda, the old-timer of the country’s mobile scene, is apparently preparing to throw a rather extravagant “IPO Bash.” They plan to offer up a sizable 20% chunk of their company, which sounds like a lot until you find out it’s around 8 billion regular shares. The party, aka the Initial Public Offering (IPO), is happening on the Uganda Securities Exchange (USE). To make it even more enticing, they are reserving the best seats at this stock market soiree for the locals, preferring Ugandan investors.
The operator said that the offer will give preference to Ugandan investors, with a listing to be carried out by December 16 in fulfilment of the National Telecommunications Operator (NTO) license.
“The offer is expected to result in meaningful local ownership of Airtel Uganda Ltd, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda,” Airtel Uganda Finance Director, Nishant Mohan said.
“This is very much in line with one of our core values of customer-centricity and we believe that the IPO will enhance Airtel Uganda’s profile across the continent,”
Airtel was given a 12-month extension to list its shares after initially missing the deadline last December. Its closest rival, MTN Uganda carried out its share listing back in 2021.
If the move gets approval from the Capital Markets Authority of Uganda, the shares will be offered to investors both via traditional channels and through the Airtel Money platform.
Airtel has picked Absa Bank Uganda as its lead transaction advisor for the process and Crested Stocks and Securities Limited as its Lead Sponsoring Broker.
Airtel’s journey
Airtel Uganda has offered mobile telecommunications services in the East African nation since 1995 and is currently the co-leader in the market with 49% revenue, and 47.3% subscriber market share, respectively. The company has 14.3 million active subscribers across Uganda.
On 1 July 2020, Airtel Uganda was granted an NTO License which permits the company to establish, install, operate, maintain, lease and sell telecommunications systems and to provide all types of telecommunication services in Uganda.
The NTO License is valid for twenty years from 1 July 2020 to 30 June 2040 and can be renewed for a further ten years.
Airtel Uganda, previously Celtel Uganda Limited, launched the country’s first mobile cellular network in 1995. Following the acquisition by Bharti Airtel Limited (“Bharti Airtel”) in June 2010, the business was rebranded as Airtel Uganda, thereby introducing the Airtel brand to the country. At that time 3G population coverage was as low as 42%.
Population coverage has risen significantly over the past decade, with Airtel Uganda’s 3G population coverage currently at 98.1%.
The company has established itself as one of the most innovative cellular mobile network operators in Uganda and was the first mobile network operator in Uganda to introduce 4G LTE technology across all its sites, currently covering 90.7% of the Ugandan population with its leading 100% 4G Network.
Airtel Uganda is a subsidiary of Airtel Africa plc, listed on the London Stock Exchange, which has a pan-African business operating across 14 countries, comprising over 140 million subscribers and a market capitalisation of approximately $5.5 billion.
Airtel Uganda had Revenues, EBITDA and Net Income of Shs1.59 trillion, Shs 888 billion and Shs 326 billion, respectively.
What’s the rush? Well, they want this whole shindig wrapped up by December 16, a date that’s circled in red on their calendar due to something called the National Telecommunications Operator (NTO) license. Nishant Mohan, Airtel Uganda’s Finance Director, chimed in with, “Yeah, we’re doing this so that Airtel Uganda feels like a homegrown sensation. We like the idea of Ugandans owning a chunk of our cell-phone extravaganza.”
Speaking of phones and shindigs, Airtel Uganda was given a time extension after they failed to show up at the listing party last December. Their competitor, MTN Uganda, decided not to wait and joined the fun back in 2021. If Airtel’s plan gets the thumbs-up from the Capital Markets Authority of Uganda, you might be able to buy these shares using traditional ways or even through Airtel Money. Yes, your phone could potentially double as your ticket to stock market stardom.
As they prepare to get their IPO groove on, Airtel Uganda has enlisted Absa Bank Uganda as the chief party planner. And just to make sure no one gets lost en route to the listing party, Crested Stocks and Securities Limited will be playing the role of the event’s GPS.
Now, let’s go back in time for a minute. Airtel Uganda has been making calls, sending texts, and probably receiving tons of WhatsApp voice notes since 1995. They’ve managed to share the market’s spotlight, or rather shadow, with a 49% revenue and 47.3% subscriber slice. Their fan base, aka active subscribers, is around 14.3 million strong, which is a lot of pocket-sized music players, considering the average ringtone length.
In 2020, they got this special license, which basically said, “Hey Airtel Uganda, you can do all sorts of cool stuff with telecommunications here.” This license is good for two decades, and they might even renew it for another ten. And yes, we’re already calculating how many emojis they’ll be able to send in that time.
Back in the day, they were called Celtel Uganda Limited, like the name of that retro app you have on your phone but never use. Then, Bharti Airtel Limited swept in and transformed them into Airtel Uganda. The fancy upgrade came with better tech, and suddenly, their 3G coverage expanded like a politician’s promises during campaign season. From a measly 42%, they now cover a whopping 98.1% of the land.
They’ve been throwing around this 4G term too. It’s like upgrading from a bicycle to a spaceship, but for your phone. Airtel Uganda was the first to introduce this 4G wonder across all its network towers, reaching nearly everyone on the playground with its “100% 4G Network” badge. Just imagine how many more cat videos you can stream now.
And by the way, Airtel Uganda isn’t just Uganda’s darling. It’s a part of the Airtel Africa family, which has branches across 14 countries and more than 140 million devoted followers—sorry, subscribers. They’re kind of a big deal on the London Stock Exchange with a value of about $5.5 billion. Also, in case you’re wondering, their earnings involve an impressive number of zeros: Shs1.59 trillion, Shs 888 billion, and Shs 326 billion, respectively.
So, there you have it. Airtel Uganda wants you to be part of their story, offering you a slice of the cellular pie in their IPO extravaganza. Will this be the start of a beautiful investor-network relationship?
