Airtel Money Eyes London Stock Exchange for Largest Float in Five Years

Airtel Money, the mobile payments arm of Airtel Africa, is planning to launch what could be the largest initial public offering on the London Stock Exchange in five years, aiming to raise around $800 million (£600 million). The flotation is expected to value the company between £6 billion and £6.7 billion, potentially making it the largest listing in London since fintech firm Wise went public in 2021.

Approximately 10 percent of Airtel Money's shares are slated for the listing, with existing investors selling down their stakes. No new capital will be raised through this process. While not yet widely known in the UK, Airtel Africa operates telecommunications and mobile money services across 14 sub-Saharan African countries, offering voice, data, and money transfer services.

Airtel Money, founded in 2011, aims to facilitate digital financial services and promote financial inclusion for millions across Africa. Its platform allows users to send money, pay bills, and access various financial services. The company reported approximately 53 million monthly active users across its 13 African markets.

Ian Ferrao, CEO of Airtel Money, stated that a London listing would support the company's next phase of growth. "The opportunity ahead of us is substantial and, importantly, there are many demographic and digital tailwinds within the markets that we serve," Ferrao said. "This listing will give us the platform to continue transforming financial services across Africa and to keep building value for our customers, our partners, African governments and our shareholders."

Airtel Africa, which is controlled by the telecommunications giant Bharti Airtel, holds a 77.9 percent stake in Airtel Money. Airtel Africa itself debuted on the LSE in 2019. Shares in Airtel Africa have seen significant growth, rising over 200 percent in the past five years.

The planned IPO comes at a time when the London Stock Exchange has experienced a scarcity of large-scale listings. Several companies have recently opted for private sales or have postponed their public offerings in London, with some choosing to list in New York or Hong Kong instead. This year, only seven companies have listed on the LSE, collectively raising £577 million, a substantial portion of which came from the Uzbekistan National Investment Fund.

Analysts suggest that Airtel Money's listing could be a significant positive development for the London market. Susannah Streeter, chief investment strategist at Wealth Club, noted that the listing has been anticipated for some time and faced potential delays due to market volatility. She also pointed out that minority investors in Airtel Money, including Mastercard, held put options that could have required Airtel Africa to buy back their stakes if the listing did not proceed, at an estimated cost of $515 million.

"This will help cement London's reputation as a big fintech centre of excellence, able to create the right base for start-ups and spin-offs to take big steps into a listed future," Streeter added. "It bodes well for fledgling newcomers and scale-ups."