Airtel Africa's mobile payments division, Airtel Money, is set to list on the London Stock Exchange through an initial public offering, with the International Finance Corporation committing to a $90 million stake purchase, signalling a significant move for the debt-free and cash-generative company in the burgeoning African digital finance market.
Key Points
- Airtel Money, Airtel Africa's mobile payments arm, has filed for an IPO on the London Stock Exchange, with existing shareholders selling shares.
- The International Finance Corporation (IFC) has agreed to buy shares worth up to £67.2 million ($90 million) at the final offer price.
- The company, operating across 13 African markets, expects to raise approximately $800 million, valuing it at $8-9 billion.
- Airtel Money CEO Ian Ferrao stated the listing would underpin the company's next wave of growth, driven by demographic and digital tailwinds in Africa.
- The business is debt-free, capital-light, and highly cash-generative, with the offer consisting solely of shares sold by existing shareholders.
Airtel Africa's mobile payments arm, Airtel Money, on Wednesday filed for a listing on the London Stock Exchange (LSE) through an initial public offering (IPO) involving an offer for sale, under which existing shareholders will sell shares.
In documents filed with the LSE, the financial services platform, which operates across 13 African markets, said it had entered into an agreement with the International Finance Corporation (IFC), under which existing shareholders will sell shares worth up to £67.2 million ($90 million) at the final offer price.
IPO Details and Shareholder Structure
Bharti Enterprises, the holding company of Airtel Africa, which is already listed on the Financial Times Stock Exchange, holds a 77.85 per cent stake in Airtel Mobile Commerce NV.
The company is backed by billionaire Sunil Bharti Mittal, who also holds a nearly 25 per cent stake in BT Group plc (formerly British Telecom).
In 2021, TPG, Mastercard, Qatar Investment Authority, and Chimetech Holding acquired minority stakes in Airtel Money for a total consideration of $550 million.
People close to the listing developments said Airtel Money could raise about $800 million, which would peg the company's market capitalisation at $8-9 billion.
Growth Strategy and Financial Strength
"It marks the start of a new chapter for Airtel Money as we announce our plans to list on LSE. A London listing will underpin our next wave of growth.
"The opportunity ahead of us is substantial, and, importantly, there are many demographic and digital tailwinds within the markets that we serve.
"We are approaching this from a position of financial strength.
"The business is debt-free, capital-light, and highly cash-generative, which is why this offer consists solely of shares sold by existing shareholders and no new capital is being raised," said Ian Ferrao, chief executive officer of Airtel Money.
The executive added that the listing would give the company a platform to continue transforming financial services across Africa.
The indicative price range and size of the offer will be disclosed in the prospectus, which is expected to be published in early October, the company said.
"Digital transaction volumes across our footprint are forecast to grow around fivefold by 2031, and we can capture this opportunity by accelerating conversion of the growing Airtel Africa telecommunications (telecom) subscriber base, moving customers onto our app where they transact more often, and by broadening the range of products we offer them," he said.
Market Performance and Risk Factors
With 53 million monthly active users as of June 30, the company, which was launched in September 2011, has grown its customer base at a compound annual growth rate (CAGR) of 20 per cent since the year ended March 31, 2018.
During this period, it has also deepened its penetration of Airtel Africa's growing telecom subscriber base each year, from 20 per cent to 41 per cent.
Airtel Money's total processed value has grown at a 33 per cent CAGR over the same period to reach $213 billion.
Revenue reached $1.3 billion for the year ended March 2026, with earnings before interest, tax, depreciation, and amortisation margin of about 50 per cent.
Among the risk factors potentially impacting the listing, the company outlined cybersecurity threats or breaches, upcoming technologies including AI, currency fluctuations, macroeconomic pressures, and high inflation, which in turn could affect consumer purchasing power across some of its African markets.
The UAE-headquartered company also flagged emerging and compounding risks of geopolitical volatility from the ongoing West Asian conflict, trade disruptions from the Strait of Hormuz as well as higher energy and commodity prices that were disrupting supply chains.
Following the IPO, Airtel Africa is expected to remain a long-term strategic shareholder and support Airtel Money's next phase of development as an independently listed business, the company said in the statement.
Citigroup, Barclays, Bank of America, Goldman Sachs, and JPMorganChase are the bookrunners for the IPO.
