We’ve been closely following the journey of Airtel Uganda’s Initial Public Offering (IPO), and the telco has just revealed the results. In case you missed our recent posts on the IPO, we can still break it down for you in a quick recap.
Airtel Uganda made the bold move of offering a portion of its shares to the public. This move aimed to raise funds for expansion and invite more people to become part-owners of the company.
NSSF (National Social Security Fund) showed its confidence in Airtel Uganda by investing UGX 199 billion for a 10.55% stake in the company. This was a significant development highlighting the telecom sector’s potential.
The Airtel IPO Results Are In
#InvestorNotice
— Airtel Uganda (@Airtel_Ug) November 6, 2023
We’re thrilled to announce that #AirtelIPO shares are now allotted and trading in shares of Airtel Uganda Ltd on the Uganda Securities Exchange will start tomorrow at 9.30AM.
For more information, visit https://t.co/jJlXyjqD0k
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Absa Bank Uganda Limited, serving as the Transaction Adviser, and Crested Capital, acting as the Lead Sponsoring Broker, have officially announced the results of Airtel Uganda’s IPO. The offer, which opened on August 30, 2023, and closed on October 27, 2023, involved the sale of 8,000,000,000 existing ordinary shares of Airtel Uganda at UGX 100 per share.
Here’s a breakdown of the key results:
- Offer Shares: A total of 8,000,000,000 ordinary shares were available.
- Number of Offer Shares Allocated: 4,355,902,835 shares were allocated, which represents a subscription rate of 54.45%.
- Total Number of Applicants: 4,614 applicants participated in the IPO.
- Total Offer Proceeds: The IPO raised UGX 211,428,850,000.
As indicated, the National Social Security Fund (NSSF) of Uganda supported the IPO with a UGX 199 billion investment, securing a 10.55% share of Airtel Uganda. This means that after the IPO, professional investors will hold 10.55% of the company’s total shares, while retail investors will hold 0.34%.
IPO Undersubscribed
The IPO received a subscription rate of 54.45% for the 800 billion Ugandan shillings ($213 million) worth of shares. This means that only a little over half of the shares offered were subscribed to by investors.
In comparison, when MTN Uganda conducted its IPO, it achieved a higher subscription rate. MTN Uganda’s IPO was also undersubscribed, but investors bought 64% of the shares on offer. Although both Airtel Uganda and MTN Uganda faced undersubscription, MTN Uganda managed to attract a slightly higher percentage of investors.
What are the next steps?
The journey doesn’t end with the allotment of shares. Successful applicants will have their SCD (Securities Central Depository) accounts credited with the number of offer shares they applied for, including any corresponding incentive shares, on November 6, 2023.
For those who were not successful, their application funds will be refunded within 14 days from the same date.
The excitement continues as the issued shares of Airtel Uganda are set to be listed on the Main Investment Market Segment of the Uganda Securities Exchange (USE) on November 7, 2023. Trading on the USE will commence at 09:30 a.m., opening up opportunities for investors to buy and sell Airtel Uganda shares.
Additionally, it’s worth mentioning that the allotment has received the green light from the Capital Markets Authority, further solidifying this significant milestone.
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