Come October, 31st 8 billion Airtel Uganda shares will be listed on the Uganda Securities Exchange. The Telecom becomes the second release after MTN Uganda in 2021. Airtel Uganda expects to raise eight hundred billion shillings from this listing, and the price per share has been set at UGX 100. The minimum application amount is UGX 250,000.
The Initial Public Offer (“IPO”) seeks to enhance the Company’s profile across the continent and provide an
opportunity for Ugandans and other eligible investors to become part owners of Airtel Uganda and participate
in its future.
Effective today, 30th August 2023 at 10:00 a.m., Ugandans can buy Airtel Uganda shares with a cut-off date of 13th October 2023 at 4:00 p.m. The telecom firm will announce the share allocation on the 30th of October 2023 at
4:00 p.m. The listing of Airtel Uganda Shares on the Uganda Securities Exchange (“USE”) and the start of trading will commence on 31st October 2023 at 9:30 a.m.
How to Apply for Airtel Uganda Shares
The telecom has made it possible for even anyone from the village using USSD (SMS) to participate by failing *185# and with your ID you can create a security deposit account and with that account, a user can make their stakes daily. The daily limit on Airtel Money is UGX 20 million and this allows those interested to make stakes at any time. The details process is as below;
- You need to open a Securities Central Depository (SCD) account. Dial 18585# on a mobile phone device to open your SCD account and apply for the shares. The process is free of charge
- If you already have an SCD account, Dial 18585# and select Apply for Shares, and follow the prompts. Details of the Authorized Selling Agents are contained in the Prospectus
- Visit the USE easy portal
- Contact your licensed broker to fill out the application form
Why buy the shares?
The Airtel Uganda shares come with several incentives for qualifying applicants, especially retail investors. Including 5 Incentive Shares for every 100 Shares allocated to retail investors applying for up to 18.5 million shares. An additional 1 Incentive Share is allocated to retail investors applying for up to 18.5mn shares through m-IPO. 10 Incentive Shares will be allotted for every 100 Shares allocated to retail investors applying for over 18.5mn shares and up to 37million shares. 20 Incentive Shares will also be given for every 100 Shares allocated to retail investors applying for over 37mn shares.
Analysts are upbeat on why the Telecom company should be a good buy for investors. Telecom companies tend to be one of the profitable infrastructure categories since they have provided an essential service of communication for the past 20 years, Mr. Kalyegira Keith the CEO of Capital Markets Authority while speaking to the press yesterday.
For the past 20 years, the telecom sector has indeed accelerated the pace of doing business in Uganda. It should however be recalled that MTN’s shares listing was under subscribed by 40 percent, which meant that 60 percent of the available shares were bought. To counteract this, Airtel Uganda has promised a 95 percent dividend payout from its net profit after tax as an incentive, for our investors. That telecom, has, however, not included its Airtel money. Business in the listing.
