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Sunil Mittal's Airtel set to launch Uganda's largest IPO

Aug 30, 2023

By: BlinkX Research Team

Airtel Uganda Ltd. is conducting an IPO to sell a 20% stake in the company to the public. The IPO is priced at 100 shillings per share, with the goal of raising up to 800 billion shillings. This move is driven by regulatory requirements and aims to increase local shareholding and deepen Uganda's capital markets.

Airtel Uganda Ltd. is planning to go public by issuing and selling shares of its stock to the public for the first time through an IPO. An IPO is a process through which a private company becomes a publicly-traded company by offering shares to investors.

The company has priced its IPO at 100 shillings per share. This means that each share is being offered to the public at a cost of 100 shillings. The valuation of the company is mentioned as 4 trillion shillings. This valuation is calculated by multiplying the IPO price (100 shillings) by the total number of shares being offered (8 billion shares), resulting in a total value of 800 billion shillings.

Airtel Uganda Ltd. is selling a 20% stake of its ownership through this IPO. This means that of the total 8 billion shares, 20% (1.6 billion shares) are being offered to the public. The IPO is being conducted to fulfill a regulatory requirement set by Uganda. The country has asked telecommunications companies to have at least 20% of their ownership listed on the local stock exchange. This helps increase local shareholding and deepens the country's capital markets.

The offer period for the IPO opens on a specified date and closes on October 13th, as mentioned in the provided prospectus. After the IPO, the company's shares are expected to start trading on the Uganda Securities Exchange on October 31st. If Airtel Uganda reaches its IPO target and successfully raises the desired funds, it will become the largest company in Uganda in terms of market value.

 

Source: Media Reports