Newsletter
Airtel Money, the mobile money arm of Airtel Africa, is gearing up for a major London IPO, potentially giving the city’s struggling listings market a much-needed boost.
Why it matters: according to Bloomberg, the offering could be the UK’s largest IPO since 2021. Airtel Money is reportedly looking to raise at least $800 million, lower than the $1.5 billion to $2 billion it had previously hoped for.
The listing could also mark a rare overseas debut for an Indian-grown business. It could become the first such company to list on an overseas stock exchange since Yatra listed on Nasdaq in 2016.
The company provides digital financial services across Africa through a mobile-led platform, allowing customers to make payments, transfer money and access other financial products.
Some context: Airtel Money is owned by Airtel Africa, a telecom company backed by Bharti Enterprises, the Indian conglomerate controlled by billionaire Sunil Bharti Mittal. Airtel Africa is already part of the FTSE 100 but now wants to list its mobile money business separately.
Zoom out: the potential listing comes at a time when London’s capital markets have been struggling.
Undervaluations, delayed IPOs and foreign takeovers have weighed on the UK stock market for years, while companies have increasingly looked elsewhere to raise capital.
The UK has been trying to turn things around. Earlier this year, the Financial Conduct Authority changed its rules to shorten the IPO process by a week and make London more competitive as a listing destination.
And the numbers show why. London IPOs have raised less than $700 million so far this year, according to Bloomberg, with the listing of Uzbek national investment fund UzNIF accounting for the bulk of that amount.
An $800 million Airtel Money IPO would therefore push London’s IPO fundraising above the $1 billion mark for the year, giving the market a much-needed boost.
Airtel Money isn't alone either. Several companies from around the world are considering London listings, including Spanish miner Abenojar Tungsten, Taiwan’s TCC Group Holdings and Uzbek logistics firm Centrum. UK-based wealth manager Utmost Group is also weighing an IPO before the end of the year.
