Airtel Money London Listing: Shares Begin Trading At £1.96, Valuing Business At £5.3 Billion

Airtel Money, the digital financial services business of Airtel Africa, has begun conditional trading on the London Stock Exchange (LSE), one of the biggest new listings in London in recent years.

The shares started trading on Friday, October 9, at an IPO price of £1.96 per share, giving Airtel Money an implied market capitalisation of around £5.3 billion ($7 billion).

The company offered 270 million existing shares in the IPO, raising around £529 million about $700 million.
Importantly, however, this is a secondary share sale, meaning the money raised goes to existing shareholders selling their holdings rather than to Airtel Money itself.

Airtel Money IPO Details

The Airtel Money IPO has attracted attention because of its size and the importance of the London listing for the African fintech sector.

Airtel Money Shares Open At £2 On London Stock Exchange

On its first day of conditional trading, Airtel Money shares initially opened around the IPO price and later climbed as much as 2% to £2, slightly above the £1.96 issue price. Reuters described the debut as relatively muted despite the size and of the listing.

How Much Did Airtel Money Raise?

Airtel Money is offering 270 million shares at £1.96 each which comes to the proceeds of approximately £529 million. There is also an over-allotment option of up to 27 million additional shares, which could take the total offer size to approximately £582 million if exercised in full.

The important point for investors is that Airtel Money itself is not receiving the IPO proceeds from the base offering.

Existing minority shareholders are selling the shares in the IPO. Reports have identified investors including Qatar Investment Authority, Mastercard and TPG-backed Rise Fund II Aurora among the selling shareholders.

The company has also confirmed that Airtel Africa is not selling its shares as part of the offering and intends to remain a long-term strategic shareholder.

Airtel Africa is an important shareholder in Airtel Money following the listing.