Airtel Kenya will spend at least US$150 million (Ksh21.5 billion) over the next three years to expand its network coverage through, among other initiatives, setting up an extra 649 new network sites across the country.
The telco’s CEO Ashish Malhotra told Business Daily on Tuesday the firm has to date rolled out over US$1 billion (Ksh143.3 billion at current exchange rates) worth of investments in the country since inception, adding that the bulk of it has happened in the last three years.
Airtel Africa, renowned for its cutting-edge telecommunications and mobile financial services spanning 14 African nations, has announced the intention to publish a prospectus and float shares on the Main Investment Market Segment of the Uganda Securities Exchange.
Airtel Uganda Limited intends to proceed with an initial public offer of 8,000,000,000 ordinary shares, representing 20 per cent of Airtel Uganda Limited.
The prospectus will be published following the approval of the Capital Markets Authority of Uganda (“CMA”).
Subject to approval of the Prospectus by the CMA, the offer will be effected by way of an offer for the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., ultimately, a wholly owned subsidiary of Airtel Africa, who will receive all the proceeds of the offering, net of related expenses
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. Following approval of the Prospectus by the CMA, the shares will be offered to retail investors via Airtel Money’s platform, in addition to traditional channels, in an effort to increase retail participation.
As previously communicated, under Article 16 of Uganda’s National Telecom Operator (‘NTO’) licence, Airtel Uganda Limited is required to list at least 20 per cent of its shares on the Uganda Securities Exchange. Airtel Uganda’s principal regulator, the Uganda Communications Commission has set a deadline of 16 December 2023 for meeting this requirement to list.
Absa Bank Uganda Limited have been appointed as Lead Transaction Advisor, Crested Capital as Lead Sponsoring Broker, Katende Ssempebwa and Company Advocates as the Legal Advisor, and EY as the Reporting Accountant.
