Right on the last day of Airtel Uganda’s Initial Public Offering (IPO), a significant milestone has been reached. This is with the announcement of the National Social Security Fund’s (NSSF) hefty investment in Airtel Uganda.
This announcement, made together by Patrick Ayota, the Managing Director of NSSF, and Manoj Murali, the Managing Director of Airtel Uganda, shows that Fund has a lot of confidence in the potential of the telecom sector. It is a significant development that highlights the strong belief in the industry.
What you need to know
The crux of the announcement is the NSSF’s application to invest a whopping UGX 199 billion for a substantial 10.55% stake in Airtel Uganda through its ongoing IPO.
The National Social Security Fund (NSSF) Uganda and @Airtel_Ug announce the Fund’s application for an investment of UGX 199 billion for 10.55% of the total shares outstanding of Airtel Uganda via its ongoing Initial Public Offering. pic.twitter.com/XY8i1vDQuU
— NSSF Uganda (@nssfug) October 27, 2023
This investment represents the strong trust that NSSF has in the telecom sector. It also highlights the promising future of Airtel Uganda and the capability of its management team.
The IPO, which commenced on August 30, 2023, has been a pivotal move by Airtel Uganda to relinquish 20% of its shares to the public, aiming to amass approximately UGX 800 billion ($216 million) to foster its expansion blueprints.
Why NSSF is investing in Airtel Uganda
There are several reasons behind this significant investment.
Firstly, it aligns with NSSF’s vision of allowing its members to invest in a successful company that offers innovative services in a growing sector. This investment aims to provide NSSF members with the opportunity to be part of a thriving business.
This endeavor goes beyond being a simple investment. It presents an opportunity for millions of Ugandans to play a vital role in the growth of the telecom company.
Additionally, it aligns with the broader goal of strengthening the Ugandan Capital Markets and promoting widespread ownership of equities. This allows investors to contribute to the growth and development of the nation as a whole.
What they said
In the joint statement, Patrick Ayota and Manoj Murali explained that the investment mirrors the confidence in the telecom sector and the promising prospects of Airtel Uganda. They emphasized that through NSSF, millions of Ugandans will significantly contribute to the telecom company’s growth journey.
The duo also affirmed their commitment to the development of Ugandan Capital Markets and promoting broad-based equity ownership to enable investors to participate in the nation’s growth
The Airtel Uganda IPO has gained more attention by doubling the number of bonus shares, aiming to attract a wider range of investors. This is an important move to ensure that all Ugandans have the opportunity to participate in this significant initiative.
The IPO is closing today (October 27, 2023), marking a significant milestone. Now, the focus shifts to the announcement of the allocation results, which is scheduled for November 6, 2023.
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