Airtel Money, the mobile money arm of Airtel Africa, has announced plans to float on the London Stock Exchange, aiming to raise £601m in an initial public offering (IPO). The company, which operates across Africa, is targeting a valuation of £6bn to £7bn, potentially making it one of the largest listings in the UK in recent years.
Airtel Money has 53 million monthly active users across 13 countries in sub-Saharan Africa. The company's parent, Airtel Africa, is part of Bharti Enterprises, a telecoms provider controlled by billionaire Sunil Bharti Mittal. Airtel Africa is already listed on the FTSE 100 but has decided to list Airtel Money separately.
Ian Ferrao, chief executive of Airtel Money, stated that the listing provides flexibility for future growth. The company evaluated multiple stock exchanges, including the Middle East, but ultimately chose London due to the availability of deep capital and institutional investors with expertise in emerging markets, particularly Africa.
Airtel Money's revenue for the last financial year was just under £1.1bn. In the most recent quarter, revenue climbed 38% to £399m. Airtel Africa currently owns 78% of Airtel Money and will remain a long-term investor after the IPO. Minority stakes are held by TPG, Mastercard, the Qatar Investment Authority, and Chimetech Holding.
The decision to float in the UK could mark a turning point for the City, which has struggled to attract listings in recent times. Airtel Money's planned listing could be one of the biggest debuts since the international payments company Wise floated in 2021 with a valuation of £8.75bn, although Wise has since moved its main listing to New York.
