The Zhitong Finance App learned that according to people familiar with the matter, the mobile payment company Airtel Money is considering raising less than the previous target in the company's initial public offering (IPO). People familiar with the matter said that the company currently expects to raise at least 800 million US dollars in London, which is significantly lower than its previous target — according to an April report, Airtel Money was planning to raise 1.5 billion to 2 billion US dollars at the time. Meanwhile, the company is currently considering setting a valuation of $8 billion to $9 billion to be in line with the tech stock valuation level, but lower than the $10 billion previously sought. Some people familiar with the matter said that after receiving feedback from investors, the company has lowered its valuation in this offering. However, people familiar with the matter said that the details of the IPO, including the scale and schedule of issuance, may still change.
Airtel Money's listing process is likely to start as soon as next week. Even though the scale of issuance has been reduced, the deal will still be one of the largest IPOs on the London Stock Exchange (LSE) in recent years, boosting the exchange. Since 2022, IPOs in the London stock market have continued to be sluggish, and this trend has also prompted the London Stock Exchange to reform its listing rules.
According to Airtel Money's official website, Airtel Money belongs to Airtel Africa Plc. Other investors include Mastercard (MA.US) and the Qatar Investment Authority, both of which hold minority shares. Most of Airtel Africa's shares are held by Bharti Enterprises Ltd, a subsidiary of Indian billionaire Sunil Mittal. The company is the third-largest wireless communications operator in Africa. After years of rapid growth, Airtel Africa has been planning an Airtel Money IPO. According to an investor presentation, in the fiscal year ending March 31, Airtel Africa's mobile money business revenue reached US$1.4 billion, an increase of 28% over the previous year. The company's stock price has remained flat since this year, rising only 0.4% as of Thursday's close.