Airtel Money, the mobile-money business of Airtel Africa Plc, begins unconditional trading on the Main Market of the London Stock Exchange on Wednesday. The listing values the company at about £5.3 billion ($7 billion) at the offer price.
The business operates across 13 markets in sub-Saharan Africa. The offer price of £1.96 a share was set on Oct. 1 by Airtel Mobile Commerce, the holding company for Airtel Money. That was below the $8 billion to $9 billion valuation discussed when the company announced its intention to float on Sept. 23. Conditional trading began on Oct. 9.
No new shares were issued, so the company raises no money from the offer. Minority investors that bought into the business in 2021 are selling 270 million existing shares, worth about £529 million ($703 million). They are TPG’s Rise Fund, Qatar Holding, Mastercard Inc. and Chimetech. The investors paid a combined $550 million for 22.15% of Airtel Money in 2021, according to reports at the time. At the offer price that stake is worth about $1.55 billion.
Airtel Africa isn’t selling any shares except through an over-allotment option of up to 27 million more shares, a standard provision that lets banks meet extra demand after a listing. The parent will keep 77.85% and plans to remain “a long-term strategic shareholder,” it said. About 16.5% of the shares will trade freely, rising to about 17.5% if the option is used in full. The company said that makes it eligible for inclusion in FTSE UK indices.
The International Finance Corporation, the World Bank’s private-sector arm, agreed to buy up to £67.2 million ($90 million) of shares from existing holders at the offer price as a cornerstone investor. Airtel Money and the selling shareholders are barred from selling more shares for 180 days, and directors for 365 days.
Airtel Money had revenue of $1.346 billion in the year through March 2026, with an EBITDA margin of about 50% and net income of $373 million, according to the company. It has no external borrowings. It had about 53 million monthly active users at the end of June. Its customers made transactions worth $213 billion over the 12 months to June 30. The company has forecast revenue growth in the mid-20% range at constant currency for the year through March 2027.
At the offer price, the company is valued at about 10.4 times EBITDA and just under 19 times net income, based on its reported figures.
Citigroup Global Markets is sole sponsor and lead global coordinator of the offer.
What to watch: How the shares trade against the £1.96 offer price on the first day of unconditional dealing, whether the over-allotment option is exercised, and whether the stock enters the FTSE UK indices.