Airtel Uganda closes IPO after extensions

Airtel Uganda recently closed its Initial Public Offering (IPO) after extensions, marking a significant milestone for the telecom company. The venture aimed to raise $213 million and took an unexpected turn when the National Social Security Fund (NSSF) of Uganda made a last-minute purchase, securing the success of the IPO. In an exclusive interview with CNBC Africa, Airtel Uganda's Managing Director, Manoj Murali, shed light on the details of the IPO and the pivotal role played by NSSF in its outcome. Murali expressed the company's gratitude for the overwhelming support received from Ugandan investors, highlighting the strong domestic participation in the share sale. Notably, NSSF acquired a 10.55% stake in Airtel Uganda, underscoring the local backing for the telecom giant's growth. The strategic move by NSSF underscored a vote of confidence in Airtel Uganda's potential and paved the way for an impactful shift in the country's capital markets landscape. Murali also addressed the decision to increase bonus shares ahead of the IPO closing, emphasizing the company's commitment to ensuring the venture's success. Moreover, he elaborated on the rationale behind the deadline extensions, citing investor feedback and the desire to maximize the IPO's effectiveness in bolstering Uganda's capital markets. While discussing the impact of the IPO on the telecom sector in Uganda and the East African Community (EAC), Murali highlighted the significance of listing Airtel Uganda's shares in the local market as a positive step towards market development and inclusive growth. The IPO not only offered investors a chance to partake in Airtel Uganda's success story but also aimed at enhancing awareness about equity investment opportunities in the region. Looking ahead, Murali remained optimistic about the company's growth trajectory and reiterated its focus on delivering value to shareholders through consistent dividends. The strategic approach towards revenue growth and expense management underscored Airtel Uganda's commitment to sustaining shareholder returns and solidifying its market position.