Airtel Uganda, a subsidiary of Bharti Airtel Group, is launching an preliminary public providing (IPO) of its shares on the Uganda Securities Trade. The IPO will supply the general public a 20% stake, or 8 billion shares, within the firm to meet a regulatory requirement set by the federal government. The supply opens on August 30, 2023, and closes on October 13, 2023.
On this article, we delve into the Airtel Uganda IPO and its shares, offering a complete understanding of what’s occurring within the Ugandan telecommunications sector.
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Airtel IPO Supply Period: When Can You Make investments?
The supply for Airtel Uganda shares opens on Wednesday, October 6, and closes on October 13. The corporate will begin buying and selling on the alternate on October 31.
This info comes from a prospectus launched on Tuesday. Uganda’s efforts to boost native shareholding and strengthen its capital markets have led to a requirement for telecommunications firms to make at the least 20% of their bourse out there on the market. Reaching its IPO goal would place Airtel Uganda because the nation’s largest firm by market worth.
What Is on the Supply
Airtel Uganda is extending an invite to the general public to accumulate a stake within the firm via the issuance of 8 billion extraordinary shares. The price of a single share is UGX 100. To take part, you’ll want to use for at least 2,500 shares, which quantities to 250,000 UGX. Functions for the Airtel shares are in batches of 500 every and there’s no higher restrict on the variety of shares you possibly can apply for, though sure restrictions would possibly apply as a result of day by day transaction limits of Airtel Cash.
Moreover, Airtel Uganda boasts an interesting dividend coverage, having maintained a mean payout ratio of 87% over the previous 5 years. This stands in distinction to MTN Uganda’s payout ratio of 56% on the time of its itemizing.
What Is the Allotment Course of
The allocation coverage for this IPO ensures that Ugandan retail and Skilled Traders traders can be thought of first if the supply is oversubscribed. Because of this if there are extra functions than out there shares, particular person {and professional} traders from Uganda can be given precedence.
How Do You Apply for Airtel Uganda Shares
To use for Airtel Uganda shares, you’ll need to have a Securities Central Depository (SCD) account. Airtel prospects with a sound Ugandan Nationwide Id Quantity (NIN) can apply for shares by way of the m-IPO platform.
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Listed here are the steps concerned:
- Dial *185*85#
- Choose choice 2, “Airtel IPO buy”
- Enter a sound Nationwide Identification Quantity (“NIN”)
- Enter the variety of shares to use for
- Choose dealer
- Enter PIN to substantiate the appliance
- SMS acquired confirming utility and element
Is Airtel Cash Enterprise Included within the IPO?
The Airtel Cash enterprise is just not included within the preliminary public providing (IPO) of Airtel Uganda. The IPO solely consists of Airtel’s services division, which supplies voice bundles, web companies, USSD, SMS, one community, and gross sales of SIM playing cards.
What’s an SCD Account
A Securities Central Depository (SCD) is a authorized entity that maintains information of possession of shares. Anybody who needs to purchase shares in a listed firm will need to have an SCD account as a result of shares can’t be held in bodily type.
Open an SCD Account
You’ll be able to open an SCD account without spending a dime by way of MTN Momo by dialing *185*85# and following the prompts, or by way of the Uganda Securities Trade Straightforward Portal: https://scd.use.or.ug/. As soon as your utility is profitable, you’ll obtain a notification (by way of SMS) of your SCD account particulars.
Something Else
Airtel Uganda is providing particular incentives for all Ugandan people (retail traders) who purchase Airtel shares. They’re giving 5 incentive bonus shares for each 100 shares allotted, and 1 extra share in the event that they apply via the m-IPO platform. As well as, bigger retail functions can obtain as much as 20 incentive shares for each 100 shares allotted.
