After a protracted slowdown in new listings, Airtel Money, the mobile money division of Airtel Africa, plans to file for what may be one of London’s largest IPOs in recent years, perhaps marking a turning point for the market.
The listing might provide London’s stock market a much-needed boost.
Over the past ten years, the market has shrunk as companies have moved away for greater values, leading Britain’s financial regulator to streamline listing requirements in an effort to make it more appealing.
Airtel Money might generate roughly $800 million from the sale, giving it a market capitalization of between $8 and $9 billion.
The business stated on Wednesday that final pricing will be announced in mid-October, with details such as the number of shares to be offered and the indicative price range anticipated to be revealed in early October.
LONDON MARKET SHOT IN THE ARM
According to Mergermarket, the $800 million offering would be London’s biggest IPO since 2021.
The deal would definitely benefit the exchange because London hasn’t seen an IPO worth more than $1 billion since 2021, according to Samuel Kerr of M&A analytics platform Mergermarket.
Airtel Money is anticipated to have a free float of at least 10% following the completion of the IPO through a secondary offering of existing shares.
Due to unfavorable market conditions related to the U.S.-Israeli war on Iran, Airtel Money postponed its initial goal of listing in the first half of 2026 until the second half.
I believe the state of the market is comparatively favorable. Indeed, there is some volatility at the moment, but many of the indexes are doing well,” Ian Ferrao, CEO of Airtel Money, said.
“We have faith in London.”
“London has deep capital accessible when it comes down to it… Ferrao told reporters,
“It’s probably easier for us to walk into London and talk to all of the investors because our brand is well-known.”
We have faith in London, and I feel it will be a suitable place for us to call home.”
Operating in Sub-Saharan Africa, Airtel Money has strategic operations in Dubai and its legal headquarters in the Netherlands.
London-listed Airtel Africa now owns approximately 78% of Airtel Money, with minority shares held by TPG, Mastercard, the Qatar Investment Authority, and Chimetech Holding.
Airtel Money said Airtel Africa would remain a long-term investor following the IPO.
With over 53 million monthly active users, revenue increased 38% to £399 million ($531 million) in the quarter ending June 30.
