24th Dec 2019 11:52
(Alliance News) - Airtel Africa PLC on Tuesday said it has priced its Malawi business shares at MK12.69, about USD0.02, ahead of its float on the local stock market.
Earlier in December, the FTSE 250 mobile operator said Airtel Malawi PLC will carry out an initial public offering on the Malawi Stock Exchange, but did not say what use would be made of the funds raised.
Malawi makes up a part of Airtel's East Africa segment, which made up around a third of the company's revenue in interim results to September. Other nations in the segment are Kenya, Uganda, Rwanda, Tanzania and Zambia.
On Tuesday, Airtel Africa said the offer is expected to comprise of 1.65 billion shares, representing 15% of the issued share capital of the Malawi company. An additional 550.0 million shares, representing 5% of the issued share capital, will be made available, subject to the exercise of the over-allotment option.
Airtel Malawi is expected to raise gross proceeds of up to MK27.92 billion, and the price implies a market capitalisation on admission of MK139.59 billion, about GBP148.7 million.
Airtel Africa shares were trading 0.2% lower in London on Tuesday at 76.90 pence each, giving it a market capitalisation of GBP2.89 billion.
The company itself is relatively new to the London market, having floated in June in 2019's biggest IPO so far in London. It is a subsidiary of India's Bharti Airtel, operating in 14 countries across Africa. It placed shares in its initial public offering at 80 pence per share.
By Evelina Grecenko; [email protected]
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