03 February 2023
The Uganda Communications Commission (UCC) has agreed to extend the deadline for listing part of the capital of telecoms operator Airtel Uganda on the Uganda Stock Exchange (USE) by one year due to unfavourable market conditions.
“Although it’s a licensing requirement, you don’t want a company to go public when the market isn’t ready, or their shares will be undersubscribed,” said Rebecca Mukite, relationship manager, public and international schools of the UCC.
The opening of the capital of Airtel Uganda to the stock market is in line with the new regulatory framework on telecoms introduced by the Ugandan government in 2018. It provides that each telecom operator will have to introduce 20% of its capital on the National Stock Exchange no later than two years after obtaining its operating license. Airtel, which obtained its national telecoms license in December 2020 for US$74.6 million would have had until 15 December 2022 to comply.
The UCC’s intervention should allow Airtel Uganda to better prepare for the introduction of 20% of its capital on the USE in accordance with the regulations in force.