Airtel Money, a subsidiary of Airtel Africa Plc, announced on Wednesday that it is considering a listing on the London Stock Exchange. This potential Initial Public Offering (IPO) could be one of the largest events in London in recent years, although its size is smaller than previously expected.
According to the company's statement, the proposed offering will consist of the sale of existing shares by current holders. Even with the stated deal size of at least $800 million, this offering will be the largest in the UK since 2021, according to data collected by Bloomberg. However, this amount is below the initial expectation range of $1.5 to $2 billion.
This announcement is viewed as positive news for the London stock market, which has long lacked primary share offerings. Airtel Money operates through a network of branches and kiosks across Africa, which are used for paying utilities, obtaining microloans, and purchasing goods.
The company reported that it processed $213 billion in the twelve months leading up to June and has approximately 53 million monthly active users. East Africa constitutes the largest customer base, but the company also notes a strong presence in Nigeria and Francophone Africa.
This decision was made after the Financial Conduct Authority changed its rules earlier this year to accelerate the IPO process and enhance the competitiveness of the British market. Sunil Taladar, CEO of Airtel Africa, explained the choice of London by stating that the investor market of developing countries and the understanding of fintech and payments in London are key factors.
Currently, London IPOs this year have attracted less than $700 million, with the main volume coming from the spring listing of the Uzbek National Investment Fund, UzNIF. The Airtel Money offering will help exceed the billion-dollar mark, while other companies, including wealth manager Utmost Group Plc, are also considering an IPO before the end of the year.
The offering is being managed by Citigroup Inc., Barclays Plc, Bank of America Corp., Goldman Sachs Group Inc., and JPMorgan Chase & Co.