Airtel Money Plans Delayed London IPO, Targets $8-9 Billion Valuation
Airtel Money's London IPO: Timeline, Valuation, and Strategic Goals
IPO Timeline and Market Conditions
Sept 23 (Reuters) - Airtel Money, the mobile money arm of Airtel Africa, intends to file for an initial public offering in London, it said on Wednesday, marking a potential turning point for a market that has faced a prolonged slowdown in new listings.
The company had originally targeted a listing in the first half of 2026 but delayed it to the second half, citing unfavourable market conditions tied to the U.S.-Israeli war against Iran.
Valuation Targets and Fundraising Plans
The Financial Times reported that Airtel Money was targeting a valuation of $8 billion to $9 billion in the IPO and was looking to raise at least $800 million from investors.
The IPO will be completed via a secondary offering of existing shares, after which Airtel Money is expected to have a free float of at least 10%.
IPO Structure and Share Details
The company said it will disclose additional details, including the indicative price range and number of shares to be offered, in early October, with final pricing in mid-October.
Strategic Rationale and Growth Plans
Leveraging Airtel Africa's Subscriber Base
“A London listing will underpin our next wave of growth," Chief Executive Ian Ferrao said in a statement, adding that the company aims to capitalise on Airtel Africa's subscriber base by offering those telecoms customers its payment solutions and other products.
Ownership Structure After IPO
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.
Financial Performance and Forecast
Recent Revenue Growth
Revenue in Airtel Money's most recent quarter to June 30 jumped 38% to £399 million ($531 million), with about 53 million monthly active users, it said.
Future Revenue Projections
The company forecast constant-currency revenue growth in a mid-20s percentage for the year to March 2027, trending higher thereafter.
Exchange Rate Information
($1 = £0.7514)
Reporting Credits
(Reporting by Shashwat Awasthi and Nithyashree R B in BengaluruEditing by Rashmi Aich and David Goodman)
