Market News

Key Points

• IPO to proceed via secondary share offering with at least 10% free float
• Offer details to be disclosed in October
• Offering could give $8 billion to $9 billion valuation, source says

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.

A source close to the matter said the company 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.

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.

SHOT IN THE ARM FOR LONDON MARKET?

Airtel Money’s 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.

“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 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 its most recent quarter to June 30 jumped 38% to £399 million ($531 million), with about 53 million monthly active users, it said.

The company forecast constant-currency revenue growth in a mid-20s percentage for the year to March 2027, trending higher thereafter.

($1 = £0.7514)