The Capital Markets Authority (CMA) announces its approval of the revised incentive share structure proposed by Airtel’s Board of Directors through their lead transaction advisor, ABSA Bank Uganda Limited, for the ongoing IPO. The approval was based on CMA being satisfied with the level of disclosure that will facilitate informed decision making on the part of investors.
The new structure is designed to encourage participation from Ugandan institutional and retail investors and generate continued investor interest in the IPO. Traditionally, incentive shares for prior IPOs have targeted retail investors. The Airtel Uganda IPO incentive scheme demonstrates innovation in trying to achieve greater success of a public offer of such a scale.
Institutional investors, typically retirement benefit schemes – directly or through fund managers, are the largest participants in capital markets all over the world, as they invest on behalf of hundreds of thousands of individuals. Members of the public are encouraged to seek advice from the licensed brokers and investment advisors as they participate in the IPO.
