The National Social Security Fund (NSSF) Uganda has announced an investment of UGX 199 billion or 10.55% into Airtel Uganda through its Initial Public Offering (IPO). They join the Kingdom of Buganda who had already bought shares.
In a joint statement issued on Friday, October 27, 2023, NSSF Managing Director Patrick Ayota and Airtel Uganda Managing Director Manoj Murali said, the investment is a testament of the Fund’s confidence in the telecom company.
NSSF says that this investment is a reflection of the confidence they have in the Ugandan telecommunication sector and the prospects of Airtel Uganda.
“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. Through the NSSF, the biggest indigenous investor, millions of Ugandans will also be an important part of the telecommunications company’s growth journey,” the statement reads.
Airtel Uganda announced that it will sell up to 20% of the company by offering shares to the public via the IPO, and subsequently listed on the Uganda Securities Exchange (USE).
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 listing will be a historic step forward for Uganda and its telecommunications sector,” the statement continues.
Meanwhile, Airtel Uganda has announced a significant enhancement of its incentive share structure, effectively doubling bonus shares for all investors.
The Board of Directors at Airtel Uganda believes that this enhancement will not only attract more investors but also allocate a larger share to Ugandan stakeholders, reflecting the company’s commitment to the local community.
Manoj Murali, the Managing Director of Airtel Uganda, expressed the company’s enthusiasm for the revised incentive program.
“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,” he stated
This gesture, which underlines Airtel Uganda’s commitment to the country’s capital markets, is seen as a landmark event that underscores the company’s dedication to its Ugandan shareholders.
