Airtel Money to debut after London’s biggest IPO in five years
Majority owner Airtel Africa Plc and Mastercard Inc. may sell an additional 27 million shares through an overallotment option after the stock debuts in London under the ticker symbol “AMC”
Mobile payments firm Airtel Money is set to debut on the London Stock Exchange (LSE) later on Friday, marking potentially the largest initial public offering (IPO) for the bourse in five years. The IPO, which saw existing shareholders Qatar Investment Authority and TPG Inc. offer 270 million shares at £1.96 each, raised approximately £529 million ($698 million).
This deal is expected to value Airtel Mobile Commerce NV, as the company is formally known, at around £5.3 billion. The LSE, looking to revive its capital markets, will host the listing under the ticker symbol “AMC.” A successful debut could signal the city's suitability for future IPOs, encouraging more companies to list on the exchange.
Conversely, a debut below the offer price could send a negative signal, discouraging potential listing candidates. London has endured a prolonged shortage of first-time share sales, a situation that has persisted for six years and extended to other parts of Europe. Despite this, Airtel Money decided to proceed with its IPO during a volatile period, as several other candidates from Europe and the US postponed their listings due to rising interest rates and geopolitical instability.
To boost investor interest, Airtel Money reduced its valuation expectations and opted for a fixed price model instead of the usual price range. Despite these measures, the IPO remains the largest first-time offering on the LSE since the boom years of 2021, based on Bloomberg's data. Airtel Money operates a network of branches and kiosks across Africa, facilitating payments for utility bills, microloans, and goods purchases.
The fintech processed $213 billion in the 12 months leading up to June, with around 53 million monthly active users. The IPO has been viewed as a testament to London Stock Exchange Group Plc's efforts to attract more foreign listings. The LSE has recently introduced a new segment for secondary listings from international firms, while FTSE Russell, which manages the FTSE UK indexes, has made it easier for foreign companies to access the country's benchmarks.
Underwriting Airtel Money's offering are Citigroup Inc., Bank of America Corp., Barclays Plc, Goldman Sachs Group Inc., and JPMorgan Chase & Co.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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