Airtel Africa to Sell 20% Stake in Uganda Subsidiary Via IPO

By Dipo Olowookere

Airtel Africa Plc has informed its shareholders in Nigeria that it plans to sell 20 per cent of its stake in its subsidiary in Uganda, Airtel Uganda Limited, to local investors through an Initial Public Offering (IPO).

In a notice to the Nigerian Exchange (NGX) Limited on Wednesday, the telecommunications company stated that this would involve the sale of 8 billion ordinary shares of the domestic unit.

“The offer is expected to result in meaningful local ownership of Airtel Uganda Limited, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda,” a part of the disclosure said.

Airtel Africa, apart from being a major player in the telecommunications industry, it is also active in mobile money services and has a presence in 14 countries across Africa, with Nigeria its major market.

Airtel Africa trades its stocks in Nigeria and on the London Stock Exchange. It joined the Nigerian stock market in 2019.

The company disclosed that it has obtained approval of the Capital Markets Authority of Uganda (CMA) and should publish the prospectus soon.

However, it noted that the public offer and the listing of the shares in Uganda should be concluded before the end of the year.

“The Uganda Communications Commission has set a deadline of December 16, 2023, for meeting this requirement to list [the stocks],” the statement further said.

The disclosure said Absa Bank Uganda Limited has been appointed as Lead Transaction Advisor, while Crested Capital is the Lead Sponsoring Broker, with Katende Ssempebwa and Company Advocates as the

Legal Advisor, and EY as the Reporting Accountant.