Airtel to Launch $2 Billion London IPO for Mobile Financial Services Entity

Airtel Africa's Mobile Money Business Eyes $1.5 Billion to $2 Billion IPO

Airtel Africa Plc's initial public offering (IPO) of its mobile money business, Airtel Money, is expected to raise between $1.5 billion and $2 billion, according to sources familiar with the matter. The listing is likely to take place in London, with the company previously considering an exchange in the United Arab Emirates and other European venues.

The valuation of Airtel Money could reach as much as $10 billion, placing it among the largest IPOs on a European exchange in recent years. Airtel Africa, Africa's third-largest wireless carrier, is owned by billionaire Sunil Mittal's Bharti Enterprises Ltd and has been planning the IPO of Airtel Money after years of rapid growth.

Airtel Africa's IPO Timeline Looks Tight

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Airtel Africa's Chief Executive Officer, Sunil Taldar, stated in February that the company is committed to listing the unit by the middle of the year, a timeline that now appears to be under pressure. The company is working with Citigroup Inc. on the IPO, with three or four more banks potentially being appointed for the listing.

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

Africa's Fintech Hub

Africa has emerged as a hub for fintech companies seeking to tap a young population increasingly using technology for banking services. Airtel Africa operates in 14 countries and is listed in London and Lagos. The company is one of several businesses controlled by Mittal, whose family has a net worth of more than $24.5 billion, according to the Bloomberg Billionaires Index.

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Mittal's Diverse Portfolio

Mittal's portfolio includes Indian telecommunications firm Bharti Airtel Ltd. and UK-based satellite company OneWeb. Last year, a unit of Bharti Enterprises acquired a 24.5% stake in BT Group Plc.