Airtel Money is planning a London stock market flotation that could value the business at $8 billion to $9 billion, making it one of the largest UK listings in recent years.
The mobile-money business, owned by FTSE 100-listed Airtel Africa, is understood to be targeting around $800 million (£601 million) in proceeds from the initial public offering.
Airtel Money has around 53 million monthly active users across 13 sub-Saharan African countries, including Uganda, Zambia and the Democratic Republic of Congo.
The business generated just under $1.4 billion of revenue in its last financial year, offering mobile payments, cash deposits, withdrawals and other financial services through a network of branches and kiosks.
Airtel Africa said it wants Airtel Money to have a separate London listing, giving the payments operation greater strategic and financial flexibility while allowing investors to value the fast-growing fintech business independently from the telecoms group.
Chief executive Ian Ferrao said the company had considered exchanges in the Middle East, Europe and North America before choosing London, citing the depth of institutional capital and investor familiarity with African and emerging-market businesses.
For Airtel Africa shareholders, the key question will be how much of Airtel Money is sold, the final IPO valuation and whether proceeds are retained by the subsidiary or returned to the parent. A successful float could also provide a clearer standalone valuation for one of Airtel Africa’s most valuable growth assets.
For the London market, an IPO at an $8bn-$9bn valuation would represent a significant new listing at a time when the exchange has been trying to attract larger growth companies and offset recent delistings.
