Free shares for investors in Airtel Uganda's $216M IPO - Don't miss out!

1 min Read September 4, 2023 at 1:27 PM UTC

Highlights

Airtel Uganda will offer free shares to investors participating in its $216 million initial public offer (IPO) which opened on Wednesday. The firm is floating 8 billion shares.
The offer, which is also open to Kenyan investors, will see the incentive shares issued to qualifying investors on a pro-rated basis, with higher application volumes guaranteeing one more free share.
Retail investors in the IPO will receive between five and 20 free shares per 100 bought, while professional investors will get between 10 and 37.5 units per 100 purchased. The incentive shares effectively represent a discount on the purchase price, which has been set at USh100 (Sh3.91) per share.

Our Takeaway

The move by Airtel Uganda to offer the incentive shares mirrors that of fellow telco MTN Uganda, which gave successful applicants in its 2021 IPO between five and 10 units for every 100 units allocated. It also comes a few days after the company announced projected dividends of $135 million and a payout ratio of 95% of retained earnings or net profit after tax (whichever is higher), all in a bid to spur the uptake of the shares. Listed companies in Africa pay some of the juiciest dividends available in emerging markets and are widely lucrative on a dividend yield basis.

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