Airtel Money is set to begin conditional trading on the London Stock Exchange at an implied valuation of £5.3 billion, or about US$7 billion, after the company confirmed final details of its initial public offering.
The offer price is £1.96 per share. It comprises 270 million existing shares sold by the company’s shareholders, with a further 27 million shares available through an over-allotment option.
If the option is exercised in full, the offer would total about £582 million and represent approximately 11% of Airtel Money’s share capital at admission.
Because the main offer consists of existing shares, the proceeds from their sale will go to the selling shareholders rather than to Airtel Money.
The company’s issued share capital is expected to comprise 2.7 billion shares after admission.
The International Finance Corporation has been allocated 34.3 million shares, representing an investment of £67.2 million under a cornerstone agreement. Of the 270 million shares in the offer, eight million were reserved for eligible UK retail investors.
Conditional dealings were expected to begin on October 9. Admission to the London Stock Exchange’s Main Market and unconditional trading are expected to start on October 14.
The company and selling shareholders are subject to 180-day lock-up periods after admission, while directors face 365-day restrictions.
Airtel Money chief executive Ian Ferrao described the listing as a landmark for the business, saying it reflected the company’s growth and its ambition to expand access to financial services across Africa.
