Airtel Africa Plc (Airtel Africa) said that Airtel Mobile Commerce N.V. (Airtel Money) has set the offer price for its planned Initial Public Offering (IPO).
Airtel Money intends to apply for admission of its ordinary shares to the equity shares (commercial companies) category of the Official List of the Financial Conduct Authority (FCA) and to trade on the Main Market of the London Stock Exchange. Admission is currently expected to occur on October 14.
Key details of the Offer
Offer price and valuation: The offer price has been set at £1.96 per share, implying an estimated market capitalisation at admission of £5.3 billion (approximately $7 billion).
Shares offered: Existing shareholders expect to sell an aggregate of 270 million existing shares. An additional over-allotment option of up to 27 million existing shares may also be sold.
Airtel Africa position: Airtel Africa will not sell any shares in the Offer (other than pursuant to the over-allotment option) and will remain a long-term strategic shareholder to support Airtel Money’s development as an independently listed business.
Public float: Based on indications from existing shareholders, approximately 16.5 percent of Airtel Money’s issued ordinary share capital will be held in public hands assuming no exercise of the over-allotment option (increasing to approximately 17.5 percent if fully exercised).
Index eligibility: Airtel Money expects its free float will qualify the company for potential inclusion in the FTSE UK index series.