Dubai-based Airtel Money prices IPO, implying $7.02bln market cap

By Staff Writer

Dubai-based Airtel Money, the mobile money arm of telecom giant Airtel Africa, has priced its IPO at £1.96 ($2.60) per share, implying an estimated market capitalisation of £5.3 billion ($7.02 billion).

Pursuant to the offer, certain existing shareholders of Airtel Money are expected to sell, in aggregate, 270 million shares. In addition, up to a maximum of 27 million existing Airtel Money shares may be sold pursuant to an over-allotment option.

Airtel Money expects approximately 16.5% of its issued ordinary share capital to be held in public hands at admission, assuming the over-allotment option is not exercised. This increases to approximately 17.5% if the maximum number of additional shares are acquired through the over-allotment option.

Based on current indications received from Airtel Money's existing shareholders, it is expected that approximately 16.5% of Airtel Money's issued ordinary share capital will be held in public hands, assuming the over-allotment option is not exercised (increasing to approximately 17.5% if the maximum number of additional Airtel Money shares are acquired).

Earlier, the International Finance Corporation (IFC) agreed to purchase up to £67.2 million ($90 million) of shares at the final offer price under a cornerstone investment agreement.

The shares will list on the Main Market of the London Stock Exchange (LSE) by October 14.

Citigroup Global Markets has been appointed sole sponsor, lead-left global coordinator and joint bookrunner, while Barclays, Bank of America Securities, Goldman Sachs and JP Morgan are acting as joint global coordinators and joint bookrunners. Additional bookrunners include Absa Bank, BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, Jefferies and Standard Bank of South Africa, with BTIG serving as co-bookrunner.

The UAE remains central to Airtel Money’s pan-African operations, with members of its senior leadership team and key functions based in the Emirates. Abu Dhabi-based Lunate holds an equity stake of approximately 2% in the business and the Qatar Investment Authority (QIA) approximately 8%.

Airtel Africa, which currently owns 77.85% of Airtel Money, expects to remain a long-term shareholder following the listing.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com