With three days left to the closure of the Airtel IPO, the telco has today announced that it is sweetening it is further sweetening its incentivisation structure, a move, the company says is to encourage more local participation.
“In order to encourage participation in the IPO and promote allocation to Ugandan investors, the Board of Directors has proposed a substantial enhancement of the incentive structure,” the company said in today’s public statement.
Under the revised structure, retail investors applying for between 2,500 and 18.5 million shares, who were under the old bonus scheme supposed to get 5 Incentive Shares for every 100 sale shares allocated, will now get 10 Incentive Shares for every 100 Sale shares allocated.
Sale shares are the shares that will be allocated post-IPO.
Under an extended IPO phase, the IPO which opened on 30th August 2023 and was to close on 13th October 2023, was extended to 27th October 2023. Allocation results will be announced on 06th November 2023.
Retail investors applying for between 2 500 shares, and up to 18.5 million shares through the m-IPO platform (using Airtel Money) and were initially entitled to an additional 1 incentive share for every 100 sale shares allocated, in addition to the 5 incentive shares indicated above, will now get an additional 1 incentive shares for every 100 sale shares allocated, in addition to the 10 incentive shares indicated above.
Retail investors applying for more than 18.5 million shares and up to 37 million shares will not be entitled to 20 Incentive Shares for every 100 Sale Shares allocated instead of the earlier 10 Incentive Shares for every 100 Sale Shares allocated. Retail Investors applying for more than 37 million shares, will now get 40 Incentive Shares for every 100 Sale Shares allocated instead of the earlier proposed 20 Incentive Shares for every 100 Sale Shares allocated.
Professional Investors who apply for more than 40 million shares, but not more than 200 million shares, will now get 20 Incentive Shares for every 100 Sale Shares allocated instead of the earlier proposed 10 Incentive Shares for every 100 Sale Shares allocated. Those applying for more than 200 million shares, but not more than 400 million shares will now get 30 incentive shares for every 100 shares allocated post-IPO, instead of the original 15. Those applying for more than 400 million shares, but not more than 1,850 million will get 80 incentive shares for every 100 shares allocated post the IPO sale, inured of the earlier 20 incentive shares.
Professional investors, who apply for more than 1,850 million shares will get 112 incentive shares per 100 allocated post-IPO, instead of the earlier 37.5 incentive shares.
Commenting on the revision of the incentive share structure, Manoj Murali, the Managing Director
Airtel Uganda said, “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. The Airtel Uganda IPO is a landmark event in the country’s capital markets and we have left no stone unturned to ensure a successful outcome.”
All investors who have previously applied for shares will receive the revised incentive shares as well.
Investors allocated shares in the offer will be eligible for dividends declared by the company in November of 2023.
“The IPO is coming to a close on 27th October and we are truly humbled by the support that Ugandans have shown us. I call upon those who wish to make the last-minute applications, to do so. We have a strong team of partners on this transaction that will assist you in making an informed choice,” Manoj added.