Airtel Africa which is the continent’s second largest mobile operator is expecting a valuation of Ksh. 460 Billion in an IPO at the London Stock Exchange.
The group has set a price range for the IPO at between Ksh. 102.3 to Ksh. 127.9 thus implying a market capitalization of Ksh. 384 Billion and 460 Billion excluding an overallotment option. The listing will see the company float 595.2 m-744m new shares, raising a total of Ksh. 76 Billion including an overallotment option.
The IPO price represents a 15-32% discount compared to the price the company sold its shares in the pre-IPO placements which was Ksh. 151.47. The lower prices reflect difficult market conditions in London due to Brexit rather than the company’s profitability as the Airtel Africa’s latest financials show that its profits haven’t deteriorated since the time it sold shares to pre-IPO investors.
The group, which is owned by Bharti Airtel of India, also said on Monday it would pursue a Nigerian listing concurrently with the London IPO. At least 25 per cent of the stock is expected to be freely floated immediately following the IPO. Shares are expected to begin trading on June 28.
Airtel has operations in 14 African markets including Kenya, Tanzania, Nigeria and Ghana.