Airtel Africa Plc has announced plans for its mobile money subsidiary, Airtel Mobile Commerce N.V., known as Airtel Money, to pursue an Initial Public Offering (IPO) and seek admission to trading on the London Stock Exchange.
The proposed listing would involve the sale of existing Airtel Money shares by current shareholders rather than the issuance of new shares, meaning the company would not raise fresh capital through the IPO.
Airtel Africa Group Company Secretary, Simon O’Hara, disclosed the plan in a statement released on the Nigerian Exchange Limited (NGX).
Airtel Africa currently beneficially owns 77.85 per cent of Airtel Money’s issued ordinary share capital.
According to the statement, Airtel Africa expects to remain a long-term strategic shareholder in Airtel Money following the proposed listing and support the subsidiary’s next phase of development as an independently listed business.
The proposed transaction would provide investors with information on Airtel Money’s operations, strategy, financial performance, current trading position and outlook, the company said.
However, Airtel Africa stressed that the proposed IPO remains subject to change and may not ultimately proceed.
“Airtel Money may decide not to proceed, and there is no guarantee that a prospectus will be published, the IPO will be completed or the shares will be admitted to trading,” the statement said.
The proposed offering is therefore a secondary share sale rather than a capital-raising exercise for Airtel Money.
