Airtel Money set for £5.3bn valuation in biggest London IPO in five years

Airtel Money is set to debut on the London Stock Exchange, with analysts forecasting a £5.3bn valuation for the mobile payments firm. The IPO, expected to be the largest London flotation in five years, is priced at £1.96 per share, potentially raising £529m from existing shareholders such as the Qatar Investment Authority and Mastercard. The shares will trade under the ticker AMC, beginning at 8am on Friday. The successful IPO could potentially grant Airtel Money a spot in the FTSE 100.

London's stock exchange has not seen an IPO exceeding £1bn since 2021, when Deliveroo and Wise floated at valuations close to £8bn. Deliveroo has since been delisted, while Wise has changed its primary listing venue to New York. The International Finance Corporation, a private-sector arm of the World Bank Group, has secured a £67.2m stake in the Airtel IPO, representing a 34m share holding. UK retail investors have been allocated 8m shares via the investment platform Retail Book.

Airtel Africa, Airtel Money's parent company, is majority-owned by Indian billionaire Sunil Mittal’s Bharti Enterprises and is Africa's third-largest wireless carrier. The company listed on the London Stock Market in July 2019. Airtel Money has experienced rapid growth, now boasting over 50m customers. The fintech recently secured a $100m investment from payments giant Mastercard in April 2021, valuing the business at $2.7bn.

Ian Ferrao, chief executive of Airtel Money, highlighted that the London listing marks a new chapter for the business, reflecting the progress made across Africa and highlighting the significant opportunities ahead. He emphasized that the listing is merely the beginning, with the company remaining committed to building Africa's leading digital financial services platform, connecting more people and businesses to the formal financial system, and supporting the continent's transition towards a more inclusive, digitally connected economy.

The IPO is anticipated to unlock a pipeline of new listings for London, particularly in the fintech sector. The UK government and stock exchange officials have been courting top fintech firms in an effort to attract more public floats. Earlier this month, payments firm Zilch initiated the preliminary steps towards its anticipated public offering, with City AM reporting that the firm is leaning towards the London Stock Exchange for a potential $2bn valuation.