Airtel Money plans one of London's largest IPOs in years

By Shashwat Awasthi and Paul Sandle

Sept ‌23 (Reuters) - Airtel Money, the ​mobile ​money arm of Airtel Africa, will file for what could be one of London's biggest initial public offerings in recent years, marking a potential turning point for the market after ‌a prolonged slowdown in new listings.

The listing could provide a much-needed boost for London's stock ⁠market, which has been shrinking over the past decade as companies have moved away for higher valuations, prompting Britain's financial regulator ‌to simplify listing rules to make ‌it more attractive.

A source close to the matter said Airtel Money could raise about $800 million from the offering, which would give it a market capitalisation of between $8 billion and $9 billion.

Details including the indicative price ​range and number of shares to be offered are expected to be disclosed in early October, with final pricing in mid-October, the company said on Wednesday.

SHOT IN THE ARM FOR LONDON MARKET

An $800 million offering ⁠would make it London's largest IPO since 2021, according to Mergermarket.

"London has not had a $1 billion-plus IPO since 2021, so the deal would undoubtedly ​be a positive for the exchange," said Samuel Kerr at M&A analytics platform Mergermarket.

The IPO will be completed through a secondary offering of existing shares, after which ​Airtel Money is expected to have a free float of ‌at least 10%.

Airtel Money had originally targeted a listing in the first half of 2026 but postponed it to the second half, citing unfavourable market conditions tied to ⁠the U.S.-Israeli war on Iran.

"I think we've got relatively good market conditions. Yes, there's some volatility right now, but if you look at a lot of the indexes, they are performing (well)," Airtel Money Chief Executive Ian Ferrao told Reuters.

'WE BELIEVE ⁠IN LONDON'

“When it comes down to it, London has deep capital available ... Our brand is well known, and that's probably made ​it easier for us to walk into London and to talk to all of the investors," Ferrao told Reuters.

"We believe in London and I think it's going to be a good home for us."

Airtel Money, which operates in Sub-Saharan Africa, ‌has its legal headquarters in the Netherlands and strategic offices in Dubai.

London-listed Airtel Africa currently owns about 78% of Airtel Money while minority stakes are held by ‌TPG, Mastercard, the Qatar Investment Authority and Chimetech Holding.

Airtel Africa will remain a long-term investor after the IPO, Airtel Money ⁠said.

Revenue in the quarter to June 30 ‌jumped 38% to £399 million ($531 million), with ​about 53 million monthly active users, it said.

($1 = £0.7514)

(Reporting by Shashwat Awasthi, Yadarisa Shabong and Nithyashree R B in Bengaluru, Paul Sandle in LondonEditing by Rashmi Aich, Anousha Sakoui and ‌David Goodman)

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