NSSF to invest UGX 199bn for 10.55% of Airtel Uganda, half of what it invested in MTN IPO

Mr. Patrick Ayota, NSSF MD

The National Social Security Fund (NSSF) Uganda and Airtel Uganda 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 (IPO).

This Investment comes in the backdrop of questionable reports around Airtel IPO which excluded the lucrative Airtel Money from the IPO.

According to a statement from NSSF, The investment reflects the confidence that the NSSF has in the telecommunications sector, the prospects of the Company, and the quality of its management team.

The Fund’s investment in Airtel gives an opportunity for millions of NSSF members to own part of a successful company in a fast-growing sector known for innovative services.

Through the NSSF, the biggest indigenous investor, millions of Ugandans will also be an important part of the telecommunications company’s growth journey.

Airtel Uganda announced that it will sell up to 20% of the company by offering shares to the public via the IPO, and subsequently listed on the Uganda Securities Exchange (USE).

The NSSF and Airtel Uganda are committed to the development of the Ugandan Capital Markets, and promoting broad-based ownership of equities to enable investors to participate in the growth and development of the country.

The deal could have been made possible through stringent negotiations which saw NSSF buy each share at 47 shillings down from the published 100 shillings.

An industry Analysts who preferred anonymity said the new NSSF purchase  price  of UGX47 as the price of the IPO,  presents that the Total outstanding Airtel Uganda shares is at 40BN.

“The valuation of Airtel would then be UGXx47x40Bn shares. This makes Airtel Uganda valuation stand at USD508M half of MTN’s USD 1.2BN” he said.

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