Airtel Uganda has filed with the Uganda Communications Commission (UCC) for a one-year extension to its deadline to list on the Uganda Stock Exchange (USE) on 15 December 2022. The telecommunications company submitted a formal application on 5 April 2022 but provided no explanation for the request.
Airtel has to comply with the need to list a portion of its shares on the USE under the National Telecom Operator (NTO) license.
“The current Uganda Communications Regulations 2020, creates a public listing obligation for all NTOs licensees and specifies that 20% of the shares of the operator must be listed within two years of the date of the effective date of the license. We have applied to the UCC for an extension on the deadline.” Airtel Uganda in a statement.
Uganda's listing requirements for telecommunications companies
In Uganda, telecommunications companies must ensure the listing of shares on the USE as well as network connectivity to at least 90% of Uganda's geographical location within five years of the license's effective date under the new licensing regime.
In 2021, MTN Uganda, the country's largest operator with 15 million subscribers, became the first company to list on the local exchange. On 6 December 2021, MTN listed 22,4 billion ordinary shares on the USE. MTN Group's shareholding in MTN Uganda dropped from 96% to 83,05% following the listing.
MTN Uganda CEO Wim Vanhelleputte remarked in a speech at the MTN IPO listing ceremony that "65% of MTN Uganda's workers have acquired shares in MTN, which is a sign that the staff trust in the company's future."
Ms. Anne Jjuuko, CEO of Stanbic Bank Uganda, said that 2,9 billion of the 4,4 billion shares offered were distributed, with 222 million of them being bonus shares. There were 21,394 candidates for this one-of-a-kind deal, with 20,894 of them being Ugandans.
— By Bataung Qhotsokoane