Will Airtel Money kickstart London’s IPO pipeline?

London's sluggish IPO market saw a possible resurgence with Airtel Money's announcement of a substantial listing, prompting hopes that the domestic pipeline will become more active, according to Charlie Conchie. Airtel Money's CEO, Ian Ferrao, explained that the company had considered several exchanges, including the US, Europe, and North America, but ultimately chose London for the IPO, citing the city's "deep pools of capital."

Should the float go smoothly, it would be London's largest in five years, with a valuation of approximately $8 billion. As a subsidiary of FTSE 100 Airtel Africa, the company has seen a significant rise in valuation since its 2019 listing, ranking among the best-performing London IPOs in the last decade. Middle Eastern exchanges, which the company initially explored more seriously than London, might have influenced the decision as well.

The successful UzNIF IPO in London earlier this year could serve as a positive example for foreign firms contemplating where to list their shares. Other potential listings in the works include the European arm of TCC, formerly Taiwan Cement, and Visma, a tech giant. However, Waterstones and RAC have decided to postpone their listings or sell into a continuation vehicle, respectively.

While Airtel Money's success may not guarantee a surge in London's IPO market, it does serve as an encouraging sign and will be closely watched by advisers. Nevertheless, external factors, such as geopolitical tension and the upcoming budget, may impact the pace of future listings in the coming months.