Bharti Airtel’s African unit plans an initial public offer (IPO) in London through which it is expected to raise around $1 billion, that will be used to pare debt.
The Sunil Bharti Mittal-led company plans to sell 25 per cent of new shares of Airtel Africa in the proposed listing on the London Stock Exchange (LSE) and is looking at trading on the main market for listed securities of the exchange. The company said it is also considering a listing of its shares on the Nigeria stock exchange. Airtel Africa had a net debt of around $4 billion at the end of March 2019.
Last year in October, a group of six global investors led by Warburg Pincus, Temasek, Singtel and SoftBank Group International announced investment of $1.25 billion through a primary equity issuance in Airtel Africa. The deal pegs its post-money equity value at $4.4 billion and enterprise value at $8.15 billion.
Although, the company has not divulged details about the amount it plans to raise through the IPO, banking sources peg the amount at around $1 billion. The company had also announced appointment of global banks for its intended IPO.
“ … Airtel Africa, a subsidiary of the company, has announced its potential intention to undertake an initial public offering for listing its equity shares on London Stock Exchange …” Bharti Airtel said in a filing to BSE. —FE