Airtel Money set the offer price for its planned London initial public offering at £1.96 a share. The price implies an estimated market capitalisation of £5.3 billion, or about $7.0 billion, at admission. Conditional trading is expected to begin on 9 October, followed by admission and unconditional dealings on 14 October.
The pricing is a material new milestone after Airtel Money announced its intention to float on 23 September. Earlier reporting had indicated a possible valuation of $8 billion to $9 billion, while The Times described the final price as below prior expectations. The offer consists of existing shares, so it will provide liquidity to selling shareholders rather than new capital to the company.
DEAL SIZE AND OWNERSHIP
Existing shareholders are expected to sell 270 million shares, worth £529.2 million at the offer price. A further 27 million shares may be sold through an over-allotment option, lifting the potential total to £582.1 million. The company expects about 16.5% of its issued shares to be in public hands without that option, rising to about 17.5% if it is exercised in full.
Airtel Africa is not expected to sell shares in the main offer, although it may participate through the over-allotment option, and intends to remain a long-term strategic shareholder. International Finance Corporation committed to buy up to £67.2 million of shares from existing investors. Airtel Money operates across 13 African markets and had about 53 million monthly active users at the end of June.
LISTING TIMETABLE
Institutional indications of interest are due by 2pm London time on 8 October. A separate UK retail offer, with a minimum application of £250, is scheduled to close three hours later. The timetable leaves only a short interval before conditional trading, subject to the offer proceeding and the required listing steps being completed.
The final allocation and any use of the over-allotment option will determine Airtel Money's initial public float. Admission would establish a separately traded valuation for a payments platform whose operations are concentrated in Sub-Saharan Africa, while Airtel Africa remains its controlling shareholder. The next confirmed milestones are the close of the books, conditional trading and the planned 14 October admission.