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(Sharecast News) - Africa's Airtel Money is to debut on the London Stock Exchange, it was confirmed on Wednesday, with a potential valuation of up to $9bn.
The mobile payments company, which operates across 13 African markets, said the listing would "underpin our next wave of growth". No valuation was set by the firm, which is majority owned by London-listed Airtel Africa, but both Reuters and the Financial Times said the company was looking at between $8bn and $9bn, citing unnamed sources familiar with the matter.
Further details, including an indicative price range and the number of shares to be offered, are expected to be confirmed early next month, with final pricing announced shortly after that.
The fintech did, however, confirm it expects to have a free float of at least 10% following the market debut, and that it would not raise any new money. Airtel Africa said separately that it expected it remain a long-term strategic shareholder following admission. Airtel Africa currently owns 77.85% of the business, with the rest owned by minority investors including Mastercard and the Qatar Investment Authority.
Ian Ferrao, chief executive, said the initial public offering would mark a "new chapter" for Airtel Money.
He continued: "In just over a decade we have grown into one of Africa's largest fintech platforms, built upon a scalable technology stack and an agent network that delivers essential financial services to approximately 53m users ever month.
"A London listing will underpin our next wave of growth. The opportunity ahead of us is substantial and, importantly, there are many demographic and digital tailwinds within the markets we serve."
The IPO will also provide a major boost for the London market, which has seen a number of high-profile companies shift listings away from the City in search of higher valuations. However, Ferrao told Reuters: "When it comes down to it, London has deep capital available. We believe in London and I think it's going to be a good home for us."
Airtel Money posted adjusted earnings of $676m on $1.35bn of revenues in the year to June.
Dan Coatsworth, head of markets at AJ Bell, said: "There was speculation [Airtel Money] would raise at least $800m through the stock listing, but now it says it will not raise any new money at all. Nevertheless, the IPO is positive for the reputation of the London market and hopefully is the first in a string of decent-sized listings in the months to come."
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