How to Buy Shares in Airtel Uganda (Airtel IPO)

Late last month, Airtel Africa placed its Ugandan affiliate, Airtel Uganda, on the Uganda Securities Exchange (USE) in preparation for its initial public offering (IPO), in which it planned to sell a 20% stake, or around 8 billion shares.

Airtel Uganda’s managing director, Manoj Murali, stated at the time of the listing that “in an Airtel IPO, Airtel Uganda 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.”

In order to increase local ownership and strengthen the national economy, the Ugandan government mandated in 2019 that all telecom businesses operating in the nation list at least 20% of their shares on the USE. The goal of the measure is to prevent the capital from being transferred back to each telco’s place of origin.

President Museveni praised MTN Group for allowing Ugandans to participate in the company’s operations when MTN Uganda listed 20% of its shares in 2021, saying that “Localization is very vital. It eliminates nationalism from the workplace, where everyone is a partner.

By December of last year, it was anticipated that Airtel Uganda will list on the USE, but the Uganda Communications Commission (UCC) granted the business permission to postpone the listing because “they were not ready due to unfavorable economic conditions.”

Since the telco is now listed, Ugandans can now purchase shares; the minimum application is for 2,500 shares.

Murali stated that the pricing for the IPO has been fixed at UGX100, and that the public may purchase shares up to October 13, 2023. The minimum application is 2,500 shares, or UGX250,000, and each ordinary share is priced at UGX100 only.

Before purchasing shares of a firm that is publicly offering securities, such as stocks or shares, Ugandans should read and carefully consider the prospectus document, according to Robert Baldwin, the CEO of Crested Capital, the lead broker for Airtel.

To better comprehend the prospectus, “reach out and speak to stockbrokers,” advised Baldwin. Potential investors might use the prospectus as a complete source of information to help them decide whether to invest in a firm.

The offer began on August 30, 2023, at 10:00 a.m., and it will end on October 13, 2023, at 4:00 p.m. If requested by the Selling Shareholder and approved by the CMA and the USE, the Offer Period may be modified or extended. The telcom will make a public announcement about any such modification or extension.

Airtel’s journey

Since 1995, Airtel Uganda has provided mobile telecommunications services in the country of East Africa. It presently holds a co-leadership position in the industry with 49% revenue and a 47.3% subscriber market share. In Uganda, the firm has 14.3 million active members.

Airtel Uganda received an NTO License on July 1, 2020, allowing it to set up, build, run, maintain, lease, and sell telecommunications systems as well as offer all varieties of telecommunication services in Uganda.

The NTO License can be extended for an additional ten years, extending its original twenty-year term from 1 July 2020 to 30 June 2040.

In 1995, Airtel Uganda, formerly Celtel Uganda Limited, introduced the first mobile cellular network in the nation. The company was rebranded as Airtel Uganda in order to launch the Airtel brand in the nation after being acquired by Bharti Airtel Limited (“Bharti Airtel”) in June 2010. At that time, just 42% of the population had access to 3G.

Airtel Uganda’s 3G population coverage is currently at 98.1%, reflecting a tremendous increase in population coverage over the past ten years.

The business has made a name for itself as one of the most forward-thinking cellular mobile network operators in Uganda. It was the first mobile network operator in Uganda to deploy 4G LTE technology across all of its sites, and it now offers coverage to 90.7% of the country’s residents on its industry-leading 100% 4G Network.

A subsidiary of Airtel Africa plc, which is traded on the London Stock Exchange and has a pan-African business operating in 14 countries with more than 140 million users and a market value of over $5.5 billion, is Airtel Uganda.

Revenues, EBITDA, and Net Income for Airtel Uganda were $1.59 trillion, $888 billion, and $326 billion, respectively.

Here is a step-by-step process of how you can apply for Airtel Uganda shares

Only qualifying applicants can apply for the purchase of the shares. A qualifying applicant may apply to purchase shares in the following three ways:

• Using the m-IPO Platform: This option is limited to eligible Airtel Uganda customers using Airtel Money as the payment channel.
• Accessing USE Easy-Portal at https://scd.use.or.ug/.
• In the event that an applicant has no access to the options listed above, they can apply for the shares by completing and submitting a physical application form.

In order for an applicant to receive an allocation of shares, applicants must have an SCD Account. Applicants who already have an SCD Account should indicate their SCD Account number when prompted and proceed with the application process.

Applicants without an SCD Account must complete the SCD Account opening process using any of the one channels: M-IPO Platform, USE Easy Portal https://scd.use.or.ug, or Through an authorized selling agent.

The authorized selling agents are; Crested Capital, Chipper Technologies Uganda Limited, Dyer & Blair Uganda Limited, SBG Securities Uganda Limited, and UAP Old Mutual Financial Services Uganda Limited.

How to open SCD Account — m-IPO Platform

1. Dial *185*85# on a mobile phone device.
2. Select the option to create an SCD Account and enter a valid National ID Number (NIN).
3. Once the NIN is validated and it is confirmed that no SCD Account exists for this NIN, you will be requested to select an authorized selling agent listed as a broker/dealer.
4. Upon selection of an authorized selling agent, you will be prompted to review and accept applicable terms and conditions.
5. You will consent to the creation of the SCD Account by submitting your Airtel Mobile PIN. Shortly after completion of the above process, a unique application identification number will be generated, and upon validation, an SCD Account will be created, and associated details communicated to the Applicant via a text message.

How to open an SCD Account — USE Easy-Portal

1. Open a web browser and open the link http://scd.use.or.ug/ and click “Create an account”.
2. Enter your details and sign up.
3. A link and instructions to verify your Easy Portal account will be sent to your email.
4. Log in using the email address and password you used to sign up.
5. Enter One-Time Pin (OTP) message is displayed, check your registered email for the pin.
6. On your Dashboard click “Link/Create SCD Account” and click “Open new account”.
7. Fill in the details and upload the necessary images and your account will be submitted to the broker for approval.

How to open SCD Account — Authorized Selling Agent
The applicant(s) will be required to complete the appropriate SCD Account opening form and the respective broker’s know-your-customer form. The know-your-customer form will enable the broker to open an SCD Account for the applicant. SCD Accounts can be opened individually or for Companies, SACCOS, Investment Clubs, and Partnerships.

1. SCD Account application process for individuals

• Submit duly completed and signed SCD account opening forms together with a copy of his/her identification document (national IDs for East Africans and passports for foreigners) to the authorized selling agents. In addition, you will be required to submit three recent color passport-size photographs of himself/herself.
• For joint accounts, in addition to submitting a duly completed SCD opening form, each signatory will be required to submit a duly completed and signed SCD Form, a copy of the valid identification documentation, and three recent color passport-size photographs.
• For Minors accounts, the parent(s) will hold the shares in trust for the minor and will be required to submit a duly completed and signed SCD form, a copy of the valid identification documentation, birth certificate, and three recent color passport size photographs for both the child and parent.

2. SCD Account application process for Companies, SACCOS, Investment Clubs, and Partnerships.

• The signatories or directors will submit duly completed and signed SCD 1b account opening forms. In addition, they will submit copies of their identification (national IDs for East Africans and passports for foreigners) and three recent color passport-size photographs.
• The following additional documents will be required:
  1. Certified copy of the certificate of incorporation, memorandum, and articles of association and Form 20 (Particulars of Directors) or the latest annual return for companies.
  2. Certificate of registration for SACCOS.
  3. Registered Constitution for Investment clubs.
  4. Registered Partnership deed for Partnerships.
  5. Registered board resolution approving the opening of the SCD account and naming at least two signatories to the account. These signatories are the only ones authorized to give any instructions relating to the account.
• The authorized selling agent shall ensure full disclosure of the applicant’s relevant information; and verify the accuracy thereof and the client’s signature.
• The authorized selling agent will then go ahead to create the account using the SCD system. A unique code will be generated and written on the form.
• The SCD form will then be submitted to the Uganda Securities Exchange (USE) for approval. A copy of the forms will be made available to the applicant.
• All above is subject to the authorized selling agent’s additional requirements. Any activation request that is rejected by the USE shall be communicated immediately by either the USE or the authorized selling agent and the documentation returned giving reasons for the rejection within two days.

Once you’re done with creating an SCD account, you can now apply for shares through any of these processes;

How to apply for shares using the — m-IPO Platform
The option to apply for shares using your mobile phone is limited to eligible Airtel Uganda customers. The application process may be completed by dialing *185*85#.

• Select the “Uganda Securities Exchange” option and enter a valid SCD Account number.
• Once the SCD Account number is validated, the Applicant will be prompted to enter the number of shares to be purchased; the amount to be paid therefore, and the selection of your preferred authorized selling agent.
• You will authorize the transaction by submitting your Airtel Mobile PIN.

Upon completion of the steps above, the application will be submitted and you will receive a text message containing the unique application identification number.

How to apply for shares using the — USE Easy Portal

• Access USE Easy-Portal web page https://scd.use.or.ug/.
• Enter valid USE Easy-Portal log-in credentials. In the event that the Applicant does not have an existing USE Easy-Portal account, click the link to “Create an account” and follow the prompts.
• Once successfully logged into a USE Easy Portal account, click the offer application and populate the required fields, which include the designated authorized selling agent, number of shares to be purchased, payment reference number, and preferred refund channel.
• Click the “Submit” button at the bottom of the web page.

When finished, the application will be given to the designated selling agent for approval. You’ll get a text message with the special application identification number in it.

How to apply for shares using the — Submission of the Application Form

You can get application forms from any approved selling agent. Anyone interested in applying for shares must fill out the application and send it back to the approved selling agents.

Applicants will receive receipts that have been torn off the bottom of application forms. In terms of the offer, all applications received from a single applicant will be combined and processed as one application.

Except for the removal of alternatives, any changes to the application form need the applicant(s) to fully sign it.

The Lead Transaction Adviser and Selling Shareholder reserve the right to accept any application, in whole or in part, even if it is inaccurately or incompletely filled out. Nominee applications are not permitted, and applicants are required to list their principals’ names, addresses, and the quantity of shares they are applying for on each principal’s behalf.

Applications may be submitted under the names of a minor’s guardian or the executor or administrator of a decedent’s estate. Such an applicant’s capacity ought to be noted on the application form. Candidates could be required to provide evidence of their authority or capacity to sign an Application Form.

Pre-existing investors will be able to access their SCD account to apply for shares:

Through the m-IPO platform:

1. Dial *185*85# on your mobile phone device.
2. Select the option to Apply for Airtel Uganda Shares.
3. Enter your valid National Identification Number
4. Input the amount of shares you wish to apply for.
5. The Applicant will be promoted to select their broker of choice.
6. Input your customer PIN to confirm the transaction.
7. Once complete, an SMS will be sent confirming the successful application for shares. A follow-up SMS will be received from the USE to confirm the provision of shares.

Through USE “Easy portal”:

1. Enter your details and sign up.
2. A link and instructions to verify your Easy Portal account will be sent to your email.
3. Log in using the email address and password you used to sign up.
4. Enter One-Time pin message is displayed, check your registered email for the pin.
5. Click “Link/Create SCD account”.
6. Select “I have an account”.
7. Fill in your SCD account number and registered email address or phone number used to open the SCD account and select “Link”.
8. You will be successfully linked, Click OK to redirect to your profile.
9. Click “IPO” on the dashboard display.
10. Select “Apply for IPO”.
11. Full in SCD number, your details are auto-populated.
12. Enter the number of shares you’re applying for. The number of shares must total to the amount
13. deposited with a receiving bank of your broker.
14. The amount due is auto-calculated.
15. Select the payment option “bank”.
16. Submit an application for verification and authorization.
17. Application is approved by authorized personnel of your broker / authorized selling agent.
18. The application is complete and will be batched and submitted to the Registrar.

Through USE “Easy portal”, broker assisted option:

1. Confirm receipt of the investor’s application funds in the authorized selling agent account at the receiving bank.
2. Authorized personnel log onto the USE Easy Portal at http://scd.use.or.ug.
3. Enter login credentials.
4. A one-time pin dialogue box is displayed.
5. Check your email and enter a one-time pin into the dialogue box.
6. Click submit.
7. Click “IPO” on the dashboard display.
8. Select “Apply for client”
9. Fill in the SCD number, the client details are auto-populated.
10. Enter the number of shares the client is applying for. The number of shares must be aligned with the offer minimum and multiples threshold.
11. The amount due is auto-calculated.
12. Select the payment option “bank”.
13. Submit the application for a second verification.
14. Application is approved by another authorized personnel of the authorized selling agent.
15. The application is complete pending batching.