The National Social Security Fund (NSSF) Uganda and Airtel Uganda have announced the Fund’s application for an investment of Shs199bn for 10.55% of the total shares outstanding of Airtel Uganda via its ongoing Initial Public Offering (IPO).
Patrick Ayota, the NSSF Managing Director, said Friday that the investment reflects the contribution that the NSSF has in the telecommunications sector, the prospects of the company and the quality of its management team.
“The Fund’s investment in Airtel gives an opportunity for the millions of NSSF members to own part of a successful company in a fast-growing sector known for innovative services,” he noted.
He added: “Through the NSSF, the biggest indigenous investor, millions of Ugandans will also be an important part of the telecommunications company’s growth journey.”
Airtel Uganda announced that it will sell up to 20% of the company by offering shares to the public via the IPO and subsequently listed on the Uganda Securities Exchange (USE).
According to Ayota, the NSSF and Airtel Uganda are committed to the development of the Uganda Capital Markets and promoting broad-based ownership of equities to enable investors to participate in the growth and development of the country.
He said the listing would be a historic step forward for Uganda and the telecommunications sector.
The Airtel IPO closes today at 4 p.m.
Manoj Murali, the Managing Director of Airtel Uganda, earlier said in order to encourage participation in the IPO and promote allocation to Ugandan investors, the Board of Directors has proposed a substantial enhancement of the incentive structure.
Commenting on the revision of the incentive share structure, Murali said, “The Company is keen to promote broad ownership of our shares and welcomes the participation of all investors. We are excited about our growth trajectory and have, at minimum, doubled the incentive shares available for all categories of investors to further enhance the attractiveness of our IPO. The Airtel Uganda IPO is a landmark event in the country’s capital markets and we have left no stone unturned to ensure a successful outcome.”
All investors who have previously applied for shares will receive the revised Incentive shares as well.
Investors who were allocated shares in the Offer will be eligible for dividends declared by the Company in November of 2023.
Commenting on the closing date of the IPO, Murali said, “The IPO is coming to a close on 27th October and we are truly humbled by the support that Ugandans have shown us. I call upon those who wish to make the last-minute applications, to do so. We have a strong team of partners on this transaction that will assist you to make an informed choice.”
| Allocation | Original Number of Incentive Shares to be allocated | Revised Number of Incentive Shares to be allocated | |
| Retail Investors | |||
| Retail investors applying for >2 500 shares, and up to 18.5mn shares | 5 Incentive Shares for every 100 Sale Shares allocated | 10 Incentive Shares for every 100 Sale Shares allocated | |
| Retail investors applying for >2 500 shares, and up to 18.5mn shares through m-IPO | Additional 1 Incentive Shares for every 100 Sale Shares allocated, In addition to the 5 Incentive Shares indicated above | Additional 1 Incentive Shares for every 100 Sale Shares allocated, In addition to the 10 Incentive Shares indicated above | |
| Retail investors applying for >18.5mn shares, and up to 37mn shares | 10 Incentive Shares for every 100 Sale Shares allocated | 20 Incentive Shares for every 100 Sale Shares allocated | |
| Retail Investors applying for >37mn shares | 20 Incentive Shares for every 100 Sale Shares allocated | 40 Incentive Shares for every 100 Sale Shares allocated | |
| Professional Investors | |||
| Professional Investors who apply for <40mn shares | No Incentive Shares | ||
| Professional Investors who apply for >40mn shares, and up to 200mn shares | 10 Incentive Shares for every 100 Sale Shares allocated | 20 Incentive Shares for every 100 Sale Shares allocated | |
| Professional Investors who apply for >200mn shares, and up to 400mn shares | 15 Incentive Shares for every 100 Sale Shares allocated | 30 Incentive Shares for every 100 Sale Shares allocated | |
| Professional Investors who apply for >400mn shares, and <1,850mn shares | 20 Incentive Shares for every 100 Sale Shares allocated (Previously for professional investors who applied for >400mn shares, and up to 2,850mn shares) | 80 Incentive Shares for every 100 Sale Shares allocated | |
| Professional Investors who apply for > or equal to 1,850mn shares | 37.5 Incentive Shares for every 100 Sale Shares allocated (Previously for professional investors who applied for >2,850mn shares) | 112 Incentive Shares for every 100 Sale Shares allocated | |