The National Social Security Fund (NSSF) has announced that it will invest UGX 199 billion or 10.55% of the total shares outstanding in Airtel Uganda via its ongoing Initial Public Offering (IPO).
In a joint statement, NSSF and Airtel said the investment reflects the confidence that the Fund has in the telecommunications sector, the prospects of the Company and quality of its management team.
“The Fund’s investment in Airtel gives an opportunity for millions of NSSF members to own part of a successful company in a fast-growing sector known for innovative services,” the statement signed by NSSF Managing Director Patrick Ayota and Airtel MD Manoj Murali reads in part.
Through the NSSF, the biggest indigenous investor, the statement added that millions of Ugandans will also be an important part of the telecommunications company’s growth journey.
“The NSSF and Airtel Uganda are committed to the development of the Ugandan Capital Markets, and promoting broad based ownership of equities to enable investors to participate in the growth and development of the country,” the statement added.
Airtel Uganda is selling up to 20% of the company by offering shares to the public via the IPO, and subsequently list on the Uganda Securities Exchange (USE).
The IPO closed on Friday, October 27, 2023.
Airtel Uganda on Tuesday announced a significant enhancement of its incentive share structure, effectively doubling bonus shares for all investors.
The Board of Directors at Airtel Uganda argued that the enhancement would not only attract more investors but also allocate a larger share to Ugandan stakeholders, reflecting the company’s commitment to the local community.
“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,” MD Murali stated.
For those investors who secure shares in the Offer, there’s even more good news. They will be eligible for dividends declared by Airtel Uganda in November 2023, adding a compelling financial incentive to the investment opportunity.