Airtel Money priced its London IPO at a $7 billion valuation on October 1. The mobile payments business will start trading on the London Stock Exchange on October 14. Airtel Africa said it intends to remain a long-term strategic shareholder in Airtel Money as it moves into its next phase.

Airtel Africa’s mobile payments business will begin trading on the London Stock Exchange this month, with 270 million existing shares offered to investors. Airtel Africa will retain its position as a long-term strategic shareholder after the listing.

By Asmi Saxena

(Photo Credit : Reuters )

Airtel Money, the mobile payments business of Airtel Africa, has priced its planned London initial public offering (IPO) at £1.96 a share, putting the company on course for a market capitalisation of around $7 billion (£5.3 billion) when it begins trading this month.

The offer price was announced on Thursday (October 1), ahead of Airtel Money’s planned admission to the London Stock Exchange on October 14. The listing will create a separately traded company for Airtel Africa’s mobile money operations, giving investors a direct route into one of the group’s fastest-growing businesses.

A major London listing

Conditional dealing in Airtel Money shares is expected to begin on October 9, with unconditional trading scheduled to start when the market opens on October 14.

The IPO will involve the sale of 27 crore existing Airtel Money shares by certain of its shareholders. A further 2.7 crore shares could be sold if the over-allotment option is exercised in full.

Airtel Africa itself is not expected to sell existing shares as part of the main offer. The group said it intends to remain a long-term strategic shareholder in Airtel Money and support the business as it moves into its next phase as an independently listed company.

Airtel Africa retains strategic stake

Based on current indications from Airtel Money’s shareholders, around 16.5% of the company’s issued ordinary share capital is expected to be held in public hands after admission. That could rise to approximately 17.5% if the maximum over-allotment option is exercised.

Airtel Money said its expected free float would make it eligible for inclusion in the FTSE UK indices.

The company plans to publish its prospectus later, with further details of the offer available through its IPO website, subject to access restrictions.