Airtel Africa, a leading telecommunications group operating across 14 African countries and controlled by Bharti Airtel, is preparing to launch an initial public offering (IPO) for its payments business, Airtel Money, in London. The flotation is expected to value the fintech unit at up to £7.5 billion and could take place as early as September.
The planned IPO marks a significant potential boost for the UK capital’s stock market, which has experienced a slowdown in new listings in recent years. Airtel Africa has enlisted Citi to lead the offering and has reportedly engaged with other banks to assist with the process. The company had initially intended to list Airtel Money last year but postponed the move due to challenging market conditions amid ongoing geopolitical uncertainty.
Airtel Money, offering a range of payment services including mobile credit loading and cash withdrawals through numerous branches and kiosks across Africa, served just over 54 million customers over the 12 months ending in March. During that period, the service saw a 21 percent increase in customer numbers and generated $1.36 billion in revenue.
The potential flotation of Airtel Money would be the largest IPO in London since Wise’s 2021 listing, which valued the payment services company at nearly £9 billion. However, Wise has since moved its primary listing to New York, highlighting the competitive pressures faced by the London Stock Exchange in attracting major fintech companies. The first half of 2024 saw only seven new listings in London, raising £577 million, primarily due to the £511 million flotation of Uzbekistan’s national investment fund.
Several other high-profile UK IPOs have been delayed or cancelled due to concerns about volatile global economic conditions, including the planned €19 billion listing of Norwegian software provider Visma and the online travel agency Loveholidays.
Airtel Africa itself reported strong financial results for the year, with revenue rising 25 percent to $6.4 billion and pre-tax profits more than doubling to $1.4 billion. The company’s growth reflects a 10 percent increase in its customer base to 179.4 million and a 17 percent rise in average revenue per user. Airtel Africa’s performance stands in contrast to many European telecom operators, which have seen slower growth amid mature markets and intense competition.
Shares of Airtel Africa, which was among the best-performing stocks on the FTSE 100 last year with a 211 percent increase, traded 1.4 percent lower at 344 pence in London during midday trading. Neither Airtel Africa nor Airtel Money have provided comments regarding the IPO plans.