Uganda (Common Wealth) _ Airtel Uganda announced plans to sell a 20% stakes in order to raise 800 billion Ugandan shillings ($216 million) to fund its development objectives.
Following MTN Uganda (MTNU.UG), which is majority owned by South Africa’s MTN Group (MTNJ.J) and will be listed in December 2021, Airtel Uganda will be Uganda’s second listed telecoms business.
At a press conference, Manoj Murali, Managing Director of Airtel Uganda, indicated that the offer of 8 billion shares would commence immediately and expire on October 13. The prospectus states that the IPO results will be released on October 30, and the shares will be listed on the Uganda Securities Exchange on October 31.
The goal of the IPO is to “establish a source of future capital to support its (Airtel Uganda’s) extensive growth strategy,” according to the prospectus. Airtel Uganda anticipates paying 500 billion Ugandan shillings in dividends in 2023, with a dividend payout ratio of 95% of retained earnings or net profit after tax, whichever is greater.
In calendar year 2022, the corporation earned a pretax profit of 474 billion Ugandan shillings, down from 565 billion Ugandan shillings the previous year. Its revenue is expected to climb 16.6% year on year in 2023, according to the company.
Airtel began in Uganda in June 2010 and is the country’s most innovative mobile phone operator, introducing numerous “firsts” in the telecoms sector. Airtel, as a mobile provider, launched low-cost communication solutions and services that have improved the lives of millions of Ugandans and businesses.
CELTEL Uganda was Uganda’s first telecommunications company, established in 1995, and revolutionized telephony by linking individuals through the use of a mobile phone. CELTEL Uganda changed its brand name to ZAIN Uganda in July 2007, which was later changed to Airtel Uganda in 2010, joining a family of over 361 million users throughout its businesses at the end of May 2016.
Airtel Uganda accomplished a fantastic success story in May 2013, acquiring Warid Telecom and growing to a family of over 8.9 million customers, making it the second largest telecom in Uganda.
Bharti Airtel purchased 16 Zain Africa operations on June 8, 2010, bringing Airtel into the Uganda market. Airtel entirely bought Warid Telecom Uganda in 2013, marking the first in-country acquisition in the telecoms sector. With this, Airtel further solidified its position as Uganda’s second largest mobile operator, with a combined user base of over 7.4 million and a market share of more than 39%, confirming its position as the number two mobile telephone network, trailing market leader MTN Uganda.
Airtel reached 10 million customers in 2018.This achievement solidified Airtel’s position as Uganda’s fastest growing telecom. Airtel Uganda acquired 100% 4G LTE coverage across all of its Ugandan sites in January 2019, making the national broadband policy a reality. As of April 2020, the telco owned over 2,000 masts in Uganda.
Airtel Uganda is one of Uganda’s top telecommunications service providers, providing communication goods and services such as 2G, 3G, and 4G wireless voice, data services, and mobile commerce via Airtel Money. As of March 2021, the Uganda Communications Commission (UCC) reported that Airtel Uganda had 10 million users out of the country’s 28.3 million mobile network subscribers. This equates to a market share of 35.3 percent.
In 2012, Airtel Uganda launched Mobile Commerce with over 5 million members as of March 31, 2019, the Airtel Money platform is a main contributor to financial inclusion and a critical point for financial inclusion. Airtel is a long-term investor, with the greatest single FDI from India to Uganda. The corporation is one of Uganda’s largest taxpayers.
Airtel was named Uganda’s largest taxpayer in 2019 for its timely remittance of taxes to the Uganda Revenue Authority. In the fiscal year 2018/19, Airtel Uganda paid taxes totaling UGX136 billion (about US$38 million), earning the Excel Award.
