As October approaches, the spotlight in Uganda’s financial market is turning towards the anticipated listing of 8 billion Airtel Uganda shares on the Uganda Securities Exchange (USE).
Airtel Uganda’s listing is expected to raise a substantial sum of eight hundred billion shillings, with each share priced at UGX 100. The minimum application amount is set at UGX 250,000, aiming to provide a diverse range of investors with an opportunity to become part owners of Airtel Uganda and participate in its future endeavors.
Commencing on August 30, 2023, at 10:00 a.m., Ugandans will be able to purchase Airtel Uganda shares, with the cut-off date for applications being October 13, 2023, at 4:00 p.m. The telecom company will unveil the share allocation results on October 30, 2023, at 4:00 p.m. The listing of Airtel Uganda Shares on the USE and the commencement of trading will officially start on October 31, 2023, at 9:30 a.m.
Access to Airtel Uganda Shares Made Easy
Airtel Uganda is breaking down barriers by providing accessibility to its shares for individuals from all walks of life. The option to participate using USSD (SMS) technology through *185# allows individuals, even from remote areas, to create a security deposit account with their ID, enabling them to make daily stakes. With a daily limit of UGX 20 million on Airtel Money, interested investors have the flexibility to invest at their convenience.
Here’s how to apply for Airtel Uganda shares:
- Open a Securities Central Depository (SCD) account by dialing 18585# on your mobile phone.
- For those with an existing SCD account, dial 18585# and select “Apply for Shares” to follow the prompts.
- Visit the USE easy portal or contact a licensed broker to complete the application process.
Attractive Incentives Await Investors
Airtel Uganda’s shares offer enticing incentives for qualifying applicants, particularly retail investors. The incentives include:
- 5 Incentive Shares for every 100 Shares allocated to retail investors applying for up to 18.5 million shares.
- An additional 1 Incentive Share for retail investors applying for up to 18.5 million shares through m-IPO.
- 10 Incentive Shares for every 100 Shares allocated to retail investors applying for over 18.5 million shares and up to 37 million shares.
- 20 Incentive Shares for every 100 Shares allocated to retail investors applying for over 37 million shares.
Analysts’ Positive Outlook
Market analysts are optimistic about Airtel Uganda’s listing and its potential attractiveness to investors. Telecommunication companies have historically demonstrated profitability, providing essential communication services for over two decades. Mr. Kalyegira Keith, the CEO of the Capital Markets Authority, expressed this sentiment, underscoring the significance of telecoms in driving business growth.
While Uganda’s telecom sector has undoubtedly transformed business dynamics over the past two decades, it’s worth noting that MTN’s shares were undersubscribed by 40 percent during its listing. To incentivize investment, Airtel Uganda has pledged an impressive 95 percent dividend payout from its net profit after tax, excluding its Airtel Money business, offering a substantial return on investment.
As the listing date approaches, all eyes are on Airtel Uganda’s strategic move in the Ugandan market, which is poised to influence both the telecommunications sector and the country’s financial landscape.
