Airtel Uganda doubles incentive for its IPO ahead of closing date

Telecom giant Airtel Uganda has announced a doubling of its incentive shares for its Initial Public Offering (IPO), three days to the closing date.

Manoj Murali, the Managing Director of Airtel Uganda, said the move is to encourage participation in the IPO and promote allocation to Ugandan investors.

“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,” he said in a statement issued on Tuesday, 24 October 2023.

“The Airtel Uganda IPO is a landmark event in the country’s capital mark and we have left no stone unturned to ensure a successful outcome,” he added.

All investors who have previously applied for shares will receive the revised Incentive shares as well.  Investors allocated shares in the offer will be eligible for dividends declared by the company in November 2023.

Depending on the band you are purchasing or potentially planning on to purchase, the lowest retail investors are now getting around 9% effective discount while the big institutional investors are getting an effective discount of 53%.

This comes three days to the closing date of the IPO.

Mr Manoj 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.”

Airtel Uganda Ltd hopes to raise Shs 800 billion in an initial public offering (IPO). The company set the price for its initial public offering (IPO) at Shs100 per share and will offer up to 20% stake or 8 billion shares.

The IPO also fulfils regulatory requirements under which the company has to mandatorily list by 16 December 2023. The offer opened on August 30 and will close on October  27.

Airtel Uganda Limited has offered mobile telecommunications services in the country since 1995 and is currently the co-leader in the market with 49% revenue, and 47.3% subscriber market share, respectively.

The telecom company has 14.3 million active subscribers across 146 districts countrywide.