Overview:
According to CMA, the approval was based on their being satisfied with the level of disclosure that will facilitate informed decision making on the part of investors.
The Capital Markets Authority (CMA) has approved the revised incentive share structure proposed by Airtel’s Board of Directors for the ongoing Initial Public Offering (IPO).
According to CMA, the approval was based on their being satisfied with the level of disclosure that will facilitate informed decision making on the part of investors.
“The new structure is designed to encourage participation from Ugandan institutional and retail investors and generate continued investor interest in the IPO,” CMA said in a statement.
According to CMA, traditionally, incentive shares for prior IPOs have targeted retail investors but that the Airtel Uganda IPO incentive scheme demonstrates innovation in trying to achieve greater success of a public offer of such a scale.
“Institutional investors, typically retirement benefit schemes – directly or through fund managers, are the largest participants in capital markets all over the world, as they invest on behalf of hundreds of thousands of individuals,” they said.
Members of the public are encouraged to seek advice from the licensed brokers and investment advisors as they participate in the IPO, CMA added.
Airtel Uganda has doubled the amount of bonus shares for potential investors, to boost participation in its initial public offering (IPO) set to close on Friday, October 27, 2023. Bonus offers will be doubled for investors across all categories, Airtel said in a statement.
“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,” Manoj Murali, the Managing Director of Airtel Uganda, said in a statement issued on Tuesday, 24 October 2023.
Airtel is selling 20% of its equity in a move aimed at raising 800 billion Ugandan shillings ($213 million).