Airtel Uganda seeks over US$200 million in IPO to drive growth

AIRTEL Uganda aims to raise 800 billion Ugandan shillings (S$292.7 million) by selling a 20 per cent stake to drive its expansion plans, the telecommunications firm said on Tuesday (Aug 29), as it announced details of its initial public offering (IPO).

When the listing completes, Airtel Uganda will be the second listed telecoms company on Uganda’s stock exchange after MTN Uganda, majority owned by South Africa’s MTN Group, which listed in December 2021.

Airtel Uganda is a unit of India’s Bharti Airtel.

Airtel Uganda managing director Manoj Murali said that the offer of eight billion shares would start immediately and close on Oct 13.

The results of the IPO will be announced on Oct 30, and the shares listed on the Uganda Securities Exchange on Oct 31, according to a prospectus.

The IPO’s objective is “establish a source of future capital to support its (Airtel Uganda’s) extensive growth strategy”, the prospectus said.

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Airtel Uganda expects to pay dividends of 500 billion Ugandan shillings in 2023 and will target a dividend payout ratio of 95 per cent of retained earnings or net profit after tax, whichever is higher.

The company made a pretax profit of 474 billion Ugandan shillings in calendar year 2022, down from 565 billion Ugandan shillings the previous year. It said its revenue is forecast to grow 16.6 per cent year on year in 2023. REUTERS