DETAILED: How to Buy Shares in Airtel Uganda

Airtel Africa late last month listed its Ugandan subsidiary, Airtel Uganda on the Uganda Securities Exchange (USE) to sell a 20% stake — roughly 8 billion shares — as part of its initial public offering (IPO).

“So 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,” Airtel Uganda Managing Director Manoj Murali said at the time of the listing.

This comes after the Ugandan government in 2019 mandated that all telecom companies operating in the country must list at least 20% of their shares on the USE with the aim of increasing local ownership and boosting the national economy. The move is to ensure that the capital would be kept within the country and not be taken back to each telco’s country of origin.

When MTN Uganda listed 20% of its shares in 2021, President Museveni commended MTN Group for allowing Ugandans to be partners in the company’s activities stating that “Localisation is very important. It removes nationalism in the business where all people become partners.”

Airtel Uganda was expected to list on the USE by December last year, but the Uganda Communications Commission (UCC) allowed the company to delay the listing, as they cited “they were not ready due to unfavorable economic conditions.”

Now with the telco on the listing, Ugandans can buy shares with the minimal application being 2,500 shares.

Murali said they have set the price for its IPO at UGX100, which is available for the public to purchase up to October 13, 2023. Therefore, each ordinary share is priced at UGX100 only and the minimum application is 2,500 shares — which amounts to UGX250,000.

Robert Baldwin, the CEO of Crested Capital, the Airtel lead broker, has advised Ugandans to read and study the prospectus document, a formal document that provides detailed information about a company that is publicly issuing securities, such as stocks or shares, before buying the shares.

“Reach out and talk to stockbrokers to help you understand the prospectus,” said Baldwin. “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.”

The offer opened at 10:00 a.m. on August 30, 2023, and will close at 4:00 p.m. on October 13, 2023. The Offer Period is subject to amendment and extension if proposed by the Selling Shareholder and consented to by the CMA and the USE. Any such amendment or extension will be announced publicly by the telco.

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.

Upon completion, the application will be submitted to the authorized selling agent for verification. You will receive a text message containing the unique application identification number.

How to apply for shares using the — Submission of the Application Form
Application forms can be obtained from any authorized selling agent. Person(s) wishing to apply for shares must complete the application form and return it to the authorized selling agents.

Counterfoils torn from the bottom of application forms will be issued to applicants as receipts. All applications received from a single applicant will be aggregated and treated as a single application in terms of the offer.

All alterations on the application form, other than the deletion of alternatives, must be authenticated by the full signature of the applicant(s).

The Selling Shareholder and Lead Transaction Adviser reserve the right to accept any application, in whole or in part, even if the application is incomplete or incorrectly completed. Applicants are not allowed to apply for shares in a nominee capacity and must disclose the names and addresses of their principals and the number of shares applied for on behalf of each principal.

Applications may be made in the names of the executor or administrator of the estate of a deceased person or a guardian of a minor. The capacity of such Applicant should be indicated on the Application Form. Applicants may 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.