Airtel Africa, a subsidiary of Bharti Airtel, on Monday said that it has set a price range of 80 to 100 pence per share for its planned initial public offering on the London Stock Exchange. Airtel Africa, which operates telecom and mobile money business across 14 African countries, eyes to raise USD 750 million (around Rs 5,236 crore) from public listing of shares.
"The price range for the offer has been set at 80 pence to 100 pence per ordinary share, implying a market capitalisation on admission of between 3,007 million and 3,623 million pounds (approximately USD 3,788 million-4,565 million)," Airtel Africa said in filing to the London Stock Exchange.
In the regulatory filing, the company said that it will sell nearly 595.2 million-744 million shares in the offering to raise up to 595 million pounds (approximately USD 750 million), including an overallotment option.
"10 per cent of the offer (100 per cent: primary) is expected to be made available pursuant to the over-allotment option... Excluding the over-allotment option, the offer is expected to comprise approximately 541.1 million-676.4 million new shares to be issued by the company to raise gross proceeds of approximately 541 million pounds (approximately USD 682 million)," the filing said.
The final pricing is expected to be announced on or around June 28, 2019 on the London Stock Exchange, the company said in the exchange filing.
Bharti Airtel's Africa arm had reported a net profit of USD 83 million during the quarter ended March 31, 2019, as compared to a net loss of USD 49 million a year ago. Airtel Africa's total revenue grew 6 per cent to USD 781 million in the March quarter versus USD 736 million in the year ago period. The operating profit, earnings before interest, taxes, depreciation and amortisation (EBITDA), rose 12 per cent to USD 344 million in Q4FY19 from USD 307 million in Q4FY18.
As on March 31, 2019 Airtel Africa had 99 million customers across three regions-Nigeria, East Africa and rest of Africa.
Edited by Chitranjan Kumar