Airtel Africa says its subsidiary, Airtel Money, plans to proceed with an initial public offering (IPO) and list its ordinary shares on the London Stock Exchange (LSE).
The proposed IPO will involve the sale of existing Airtel Money shares by current shareholders, rather than the issuance of new shares.
This means Airtel Money will not raise fresh capital through the planned listing.
Airtel Africa disclosed the development in a statement on Wednesday, saying it expects to remain a long-term strategic shareholder in Airtel Money after the proposed listing.
Airtel Money IPO to involve existing shares
According to Airtel Africa, the proposed offering will be a secondary share sale by existing shareholders.
“The proposed IPO would comprise a secondary offering of existing Airtel Money shares to be sold by existing Airtel Money shareholders, with no new capital being raised by Airtel Money,” the company said.
Airtel Money intends to apply for admission of its ordinary shares to the equity shares (commercial companies) category of the Financial Conduct Authority’s official list.
The company also plans to apply for trading of its shares on the main market of the London Stock Exchange.
Airtel Africa retains major stake
Airtel Africa currently owns 77.85 per cent of Airtel Money’s issued ordinary shares.
The telecommunications company said it would continue supporting Airtel Money’s development as an independently listed business following the proposed IPO.
Airtel Africa added that its announcement includes information about Airtel Money’s operations, strategy, financial performance, current trading and outlook.
The company said it will provide further updates on the proposed IPO as appropriate.
