People with knowledge of the situation say Airtel Africa is planning to sell shares in Airtel Money in London for between $1.5 billion and $2 billion. This could give Airtel Money a value of up to $10 billion, making it one of the biggest IPOs on a European stock market in recent years.
London is now looking like the most likely place for this to happen, according to those people. They say a stock exchange in the United Arab Emirates was considered, as were other European cities, but London is the main focus now.
Proposed deal at a glance
Airtel Africa has wanted to publicly list its quickly expanding mobile money business for some time. Though the discussions are confidential and still in the beginning stages, the general details of the potential deal are becoming clearer.
Key elements described by people familiar with the plan include:
– Deal size of $1.5 billion to $2 billion
– London seen as the likely listing venue
– Potential valuation of up to $10 billion
– Plans remain subject to change
Why the listing matters
If the IPO is successful, it would clearly show the worth of one of Airtel Africa’s fastest-growing parts of the business and emphasize how quickly Africa is moving toward using digital financial services. Airtel Africa is the third-largest mobile phone company in Africa, and most of it is owned by Sunil Mittal’s Bharti Enterprises.
The amount of money and the price being talked about would put this offering among the larger recent IPOs in Europe, showing investors are very interested in mobile money platforms. It would also create another publicly traded company in the same area, and this particular sector has attracted a lot of investment from around the world.
Inside Airtel Money’s growth metrics
Airtel Money has been doing very well. In the first nine months of last year, its income grew by 29.4% to $986 million, and it reached over 52 million customers for the first time, as Airtel Africa’s results for the third quarter showed.
TPG, Mastercard and a part of Qatar Investment Authority are among the international investors who put money into the unit. Airtel Africa has operations in 14 African countries and is already listed on the stock exchanges in London and Lagos, giving it access to a lot of investment money.
Africa has become a center for new ideas in financial technology (fintech) because a large number of young people who use mobile phones first are increasingly using banking services that rely on technology. Airtel Money is large enough to take advantage of this increasing trend.
Banks, timing, and open questions
Citigroup is helping Airtel Africa with the IPO, and three or four more banks might be added to the team, people with knowledge of the situation say. Both Airtel Africa and Citigroup’s representatives have said they won’t comment.
Sunil Taldar, Airtel Africa’s CEO, said in February that the company intended to list the mobile money unit by the middle of the year. Those people say this deadline now seems difficult to meet; the plan is still in its early phases and no final choices have been made about the size of the offering, when it will happen, or where it will be listed.
Investors will also be looking at what Airtel Africa says in its full-year report on May 8th for any news about the process. They will pay close attention to details about which banks are involved, what has been filed with regulators, and where the listing will be.
What to watch next
Here are the milestones the market is tracking:
– Confirmation of the listing venue
– Final decision on deal size and timing
– Bank syndicate appointments beyond Citigroup
– Regulatory filings and prospectus progress
– Commentary at the 8 May results
The broader context for investors
Airtel Money’s possible listing comes after several years of fast growth and lots of money going into mobile wallets and payment systems in Africa. Listing in London could bring in more investors and set a standard for how much companies like this are worth throughout the fintech industry in Africa.
The price it could be valued at, if it is reached, would show how well the company is doing and how valuable a payment system is strategically. For Airtel Africa, it would open up new ways to get money and highlight how successful its financial services branch is on its own.
If the IPO goes ahead as those with knowledge of it say it will, it will be a very visible test of whether investors are willing to put money into big, rapidly growing companies in Europe. For now, the company is considering all its options for where to list, when to do it, and how much of the company to offer.
