An IPO, or Initial Public Offering, is a highly regulated process by which a private company offers its
shares to the public for the first time, effectively becoming a publicly traded company.
A share represents ownership in a company. In other words, if you own one share of Company, you own
a percentage of the company.
In an IPO, the company transitions from being privately owned by a relatively small number of investors
to having its ownership distributed among a larger group of shareholders, including individual and
institutional investors.
The Timetable
1. Offer opens 30 August 2023 at 10:00 a.m.
2. Offer closes 13 October 2023 at 4:00 p.m.
3. Announcement of share allocation 30 October 2023 at 4:00 p.m.
4. Listing of Airtel Uganda Shares on the USE and start of trading will commence 31 October 2023
at 9:30 a.m.
5. Any eligible investor can apply to buy as many shares as they want anytime between 30 August
2023 – 13 October 2023
How the IPO process generally works:
For investors, participating in an IPO can offer the opportunity to invest in a company early on and
potentially benefit from share price appreciation as the company grows and succeeds.
However, investing in IPOs also carries risks, including market volatility and uncertainty about the
company's future performance.
Benefits of Investing in an IPO.
Investing in an Initial Public Offering (IPO) can offer several potential benefits to investors. However, it's
important to note that while IPOs can be attractive opportunities, they also come with risks.
Here are some of the potential benefits of investing in an IPO
- Dividends: When a company makes a profit, the Board of Directors may pay out a percentage of the
retained earnings to its shareholders and this is known as a dividend. In other cases, the Board of
Directors can propose to retain the profits in the company to increase its capital and this is known as
retained earnings. - Capital Gains: When shares are sold at a price that is higher than the price at which they were
purchased, this represents a profit. This profit is called a Capital Gain. - Voting Rights: Shares give a shareholder the right to attend and vote on important company policies
at the Company’s Annual General Meetings including making a choice on the Directors of the
Company. - Collateral: Shares are one’s assets and maybe accepted as collateral (for example security for a loan).
- Transferability: Shares can be transferred between Father to Child, Mother to Child, Husband to Wife
or Wife to Husband. One can inherit shares if the deceased passed rights to them or to an appointed
administrator if there is no will. - Diversification: Including IPO investments in your portfolio can provide diversification benefits,
especially if the companies you are investing in operate in different sectors or industries.
What is a prospectus.
A prospectus is a formal document that provides detailed information about a company that is issuing
securities, such as stocks or bonds, to the public. It is an essential component of the regulatory process
for companies looking to raise capital through an initial public offering (IPO) or other securities offerings.
The prospectus serves as a comprehensive source of information for potential investors, enabling them
to make informed decisions about whether to invest in a company.
What is an SCD Account
A Securities Central Depository (SCD) account is an account in which shares are maintained in the name
of the shareholder.
Anyone who wants to buy shares must have an SCD Account because shares in a listed company cannot
be held as a physical share certificate.
You can open one by Dialing *185*85# today or visiting the Uganda Securities Exchange portal and
following the steps below;
- Visit https://scd.use.or.ug
- Sign with your email and password. If you are joining for the first time, click on Create Account
and fill in the details. An email will be sent to your registered email address, open it and confirm
registration. - Click on Link/ Create SCD Account.
- Tap on open New Account.
- Enter your personal data as required including the name, title, date of birth and gender then
click Next. - Upload your identification documents.
- Enter contact information and click Next.
- Then fill in bank information for remittances.
- Select your Stockbroker.
- Review the details and accept the Terms and conditions then submit the application.
- Your SCD number will be generated as soon as the information is verified.
Why Airtel
Airtel is engineering a network revolution! With 98.1% 3G population coverage and 100% 4G
dominance, they are setting the bar high. But the excitement doesn’t stop there – a 5G roadmap is in
progress!
Airtel Uganda’s integration with Airtel Africa plc means access to abundant resources and expertise and strategies that make a real difference.
Airtel Uganda’s financial performance in 2022 was nothing short of impressive! Revenues soared to UGX 594 billion, while EBITDA reached an impressive UGX 888 billion. The bottom line? Net income stood strong at UGX 326 billion.
Benefits
Stable Growth Potential: Airtel Uganda operates in the telecommunications sector, which is known for
its stability and consistent demand. With its established presence and growth strategies, the company
has the potential to provide steady and long-term growth.
Leading Network Infrastructure: Airtel Uganda boasts impressive network coverage, including a 98.1%
3G population coverage and a 100% 4G network. Investing in a company with a robust network
infrastructure positions you to benefit from the increasing demand for high-quality and reliable
connectivity.
Customer-Centric Approach: Airtel Uganda’s commitment to its customers is evident in its emphasis on
involving Ugandan investors, including its own customers, in its growth journey. This customer-centric
approach fosters a strong sense of partnership and loyalty, potentially translating into positive investor
sentiment.
Diversified Revenue Streams: Airtel Uganda’s operations span various telecom services, including voice,
data, and mobile money. This diversification can help mitigate risks associated with changes in
consumer preferences and market dynamics, potentially contributing to a stable revenue stream.
Innovation and Technology: The company’s pursuit of technological advancements, including the
development of a 5G roadmap with 50 sites already installed, showcases its commitment to staying at the forefront of innovation. As technology evolves, being part of a company that embraces innovation
can lead to exciting opportunities for growth.
Affiliation with Airtel Africa plc: Airtel Uganda is part of the larger Airtel Africa group, which operates in
multiple countries across the continent. This affiliation grants access to shared resources, expertise, and
best practices, enhancing the company’s potential for growth and success.
Financial Performance: Airtel Uganda’s impressive financial performance, with substantial revenues,
EBITDA, and net income, demonstrate its ability to generate profits. Investing in a financially sound
company can provide potential dividends and capital appreciation.
Uganda’s Economic Growth: As Uganda’s economy continues to develop, there is a growing demand for
telecommunications services. Investing in Airtel Uganda positions you to benefit from the country’s
economic growth and increasing connectivity needs.
