$2 billion Airtel Money IPO in the offing? What we know so far

Airtel Africa Plc is eyeing to raise $1.5-$2 billion through an initial public offering (IPO) of its mobile money business, Airtel Money, people familiar with the matter told Bloomberg. London has emerged as the most likely venue for the listing, the people said, while cautioning that the information is still private.

The proposed listing could value Airtel Money at as much as $10 billion, the people told Bloomberg. If that happens, it would rank among the largest IPOs on a European exchange in recent years. No final decisions have been taken yet on the size of the deal, its timing or the listing venue, said Bloomberg citing sources.

An exchange in the United Arab Emirates had earlier been reported as the preferred venue, while other European exchanges have also been under consideration, Bloomberg had reported earlier. London is now seen as the frontrunner, according to the sources.

Airtel Africa, which is mostly owned by billionaire Sunil Mittal’s Bharti Enterprises Ltd (Bharti Airtel Ltd) is Africa’s third-largest wireless carrier. The company has for some time been planning an IPO for Airtel Money after years of rapid growth in the business. In February, Airtel Africa Chief Executive Officer Sunil Taldar said the firm remained committed to listing the unit by the middle of the year, though that timeline now appears tight.

The company is working with Citigroup Inc. on the IPO, and three or four more banks could be appointed for the listing, the people familiar with the matter told Bloomberg. Representatives for Airtel Africa and Citigroup declined to comment.

Airtel Money counts several international investors, including TPG Inc, Mastercard Inc and an affiliate of Qatar Investment Authority. According to Airtel Africa’s third-quarter results, the business posted a 29.4 per cent rise in nine-month revenue to $986 million last year, while its user base crossed 52 million for the first time.

Airtel Africa is due to report its full-year results on May 8. For now, the planned Airtel Money IPO remains at an early stage, with London the most likely venue and fundraising of up to $2 billion under consideration, according to people who spoke to Bloomberg.