Airtel is said to eye $2 billion London IPO of mobile money unit

Airtel Africa may raise up to $2 billion through a London IPO of its mobile money arm, potentially valuing it at $10 billion, Bloomberg reported, citing people familiar with the matter.

By Bloomberg

Airtel Africa Plc’s initial public offering of its mobile money business could raise between $1.5 billion and $2 billion, according to people familiar with the matter.

London is now the most likely location for the listing of Airtel Money, the people said, asking not to be identified as the information is still private. An exchange in the United Arab Emirates had previously been reported as the preferred venue, and other European venues have also been considered, Bloomberg reported earlier.

The listing could value Airtel Money at as much as $10 billion, the people said, a valuation that would place it among the largest IPOs on a European exchange in recent years.

Airtel is mostly owned by billionaire Sunil Mittal’s Bharti Enterprises Ltd and is Africa’s third-largest wireless carrier. It has long been planning an IPO of Airtel Money after years of rapid growth. Airtel Africa’s Chief Executive Officer Sunil Taldar said in February that the firm is committed to listing the unit by the middle of the year, a timeline that 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 said.

Representatives for Airtel Africa and Citigroup declined to comment. The listing plans are still at an early stage, and no final decisions have been made on the deal size, timing or location, the people added.

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Airtel Money has a series of international investors, including TPG Inc., Mastercard Inc., and an affiliate of Qatar Investment Authority. The business’s nine-month revenues grew by 29.4% to $986 million last year, with users crossing 52 million for the first time, according to Airtel Africa’s third-quarter results. Airtel Africa will report full-year results on May 8.

(Edited by : SHEERSH KAPOOR )