Airtel Africa Plans Airtel Money IPO, Targets $10 Billion Valuation

Airtel Africa Plc is preparing a potential blockbuster listing of its mobile money arm, Airtel Money, which could raise between $1.5 billion and $2 billion, according to people familiar with the discussions. The proposed initial public offering (IPO) may value the business at up to $10 billion, placing it among the biggest listings on a European exchange in recent years.

The company, backed by billionaire Sunil Bharti Mittal through Bharti Enterprises, is said to be leaning towards London as the preferred listing destination. While Airtel Africa’s shares are already traded in London and Lagos, this separate listing could unlock value from its fast-growing fintech unit.

Why Is Airtel Money’s IPO Drawing Attention?

Airtel Money has become one of the strongest growth engines for Airtel Africa Plc. The business reported a 29.4% rise in revenue to $986 million over nine months last year, while its user base crossed 52 million for the first time. Digital payments and mobile-based banking are gaining ground in Africa thanks to rapid adoption amongst the young population.

The IPO comes at a time when global investors are actively looking at African fintech opportunities. Airtel Money already counts major backers such as TPG Inc., Mastercard Inc., and an affiliate of Qatar Investment Authority.

Listing Plans Still Taking Shape

Citigroup Inc. is leading the syndicate for the IPO with a few banks set to join. Key details such as the final size of offering, timelines, and the exact listing venue are yet to be revealed.

There had been speculation that the UAE exchanges were being considered as potential venues for listing. For the moment, London is considered the favourite, although further talks may yet take place regarding this matter.

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Can Airtel Meet Its Timeline?

Airtel Africa’s CEO, Sunil Taldar, had earlier said the company aims to list the unit by mid-year. That target now looks ambitious, given that planning is still at a relatively early stage.

Airtel Africa is present in 14 nations and continues to be the continent’s third-largest cellular network provider. Apart from telecommunication services, some of the other businesses that are part of the group include Bharti Airtel Limited and OneWeb, a satellite company.

Should the IPO take place as planned, it might be a defining moment not only for Airtel Africa but also for the wider fintech industry in Africa. Whether or not the right factors will come together for a successful listing is something yet to be seen.

Sources:

The Economic Times

Moneycontrol