Airtel Uganda Ltd, a telecommunications provider and subsidiary of Airtel Africa plc, has revealed its plan to raise 800 billion Ugandan shillings (approximately $216 million) through an initial public offering (IPO), with backing from billionaire Sunil Mittal.

The announcement was made in an official statement released on Tuesday.

As part of this significant IPO, the company has valued its shares at 100 Ugandan shillings (UGX) per share.

Airtel Uganda’s goal is to offer up to a 20% stake, which translates to eight (8) billion shares.

This move holds immense importance for the company, aligning with regulatory requirements that mandate its listing by December 16.

“The IPO is open to both investors and the general public, commencing on Wednesday and closing on October 13,” the release indicated.

Successful completion of the offering will pave the way for Airtel Uganda to begin trading on the Uganda Securities Exchange starting October 31.

Airtel Uganda has established itself as a prominent player in the Ugandan market, providing mobile telecommunications services since 1995.

It shares a leading position with 49% of the revenue and a subscriber market share of 47.3%.

It is worth noting that the company serves an impressive 14.3 million active subscribers across 146 districts within Uganda.

In the fiscal year ending on December 31, 2022, Airtel Uganda reported strong financial results, including revenues of UGX 1,594 billion, EBITDA of UGX 888 billion, and net income of UGX 326 billion.

The company’s journey began when it introduced Uganda’s first mobile cellular network in 1995 under the name Celtel Uganda Ltd. Following its acquisition by Airtel in June 2010, the company adopted its current identity as Airtel Uganda.

Highlighting the IPO’s alignment with Airtel Uganda’s customer-centric values, Managing Director Manoj Murali emphasized that the offering provides preferential treatment to Ugandan investors and customers, allowing them to become stakeholders in the company and participate in its future growth.

“The IPO structure includes a benefit for retail investors, who will receive five (5) additional shares for every 100 shares they purchase, as explained by Hannington Karuhanga, the Board Chairman of Airtel Uganda Ltd.”

The IPO’s success is being facilitated by Absa Bank Uganda Ltd., the lead transaction adviser, and Crested Capital, the lead sponsoring broker.