London Stock Exchange welcomes Airtel Africa
Airtel Africa plc (“Airtel Africa“) today opened the markets of the London Stock Exchange to Airtel Africa plc (“Airtel Africa“) today opened the markets of the London Stock Exchange to mark the occasion of the pricing of its initial public offering on 28 June 2019. The Company intends to raise gross proceeds of £595 million from a mix of new institutional and existing Airtel Africa investors.
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries, primarily in East Africa and Central and West Africa. Airtel Africa serves a large and fast-growing addressable market, with attractive mobile data and mobile money growth prospects as non-voice revenue remains lower than other geographies. Each of the 14 markets the Company operates in demonstrates strong GDP growth potential, with young and fast-growing populations that are increasingly connecting to mobile networks. Airtel Africa is well positioned to further develop and expand its mobile services offering to address the changing market demands.
The Company offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services, under the Airtel Money brand. Looking at each in turn:
- Mobile voice – comprises of pre- and post-paid wireless voice services, international roaming, fixed-line telephone services and interconnect revenue paid to the Group by other telecommunications providers.
- Mobile data – the provision of data communications services, including 2G, 3G and, increasingly, 4G data services, and other value-add services for mobile subscribers.
- Airtel Money – a mobile commerce service that is accessible 24 hours a day, 7 days a week through customers’ mobile devices. Airtel Money is available across the Company’s footprint and serves 14.2 million customers. Airtel Money is the Company’s fastest growing business, with significant potential for further growth as Airtel Africa leverages its telecom platform to expand into new markets.
Commenting on the result of the IPO, Sunil Bharti Mittal, Chairman of Airtel Africa said:
“The strong support we have received from institutional investors demonstrates the attractive investment proposition Airtel Africa offers the market. Since first investing in Africa almost nine years ago, we have leveraged our expertise in emerging markets to deliver on a clearly defined strategy to build Airtel Africa into a market-leading mobile service provider, increasingly expanding beyond voice into data services and Airtel Money. The Board would like to thank those involved in the process and looks forward to supporting the management team as they execute on the strategy.”
Raghunath Mandava, CEO of Airtel Africa added:
"This is an exciting time for us. We are very pleased with the success of the initial public offering and welcome our new shareholders. The strength of our network and continued growth and evolution of the African telecoms sector has fuelled the demand for our shares. We have a strong track record operating in a fast-growing region. The markets we operate in have powerful and promising underlying macroeconomic and demographic trends, and we believe we are best placed to capitalise on this opportunity. We are delighted to give a broader range of investors access to the benefits of our in-depth knowledge of the markets we operate in. We have a clear strategy to continue growing and look forward to delivering it.”