Airtel Money plans a London IPO at up to $9 billion, up to about 7 times revenue for a debt-free African wallet
Airtel Africa's mobile money arm will list in London by selling existing shares, aiming to raise at least $800 million. That is well below the $1.5 billion to $2 billion it once hoped for, and it could still be the UK's biggest IPO since 2021.
Airtel Money, the mobile payments arm of FTSE 100 telecom group Airtel Africa, said on Wednesday that it intends to list on the London Stock Exchange. The offer will consist only of shares sold by existing holders, so the company will raise no new money. Airtel Money is aiming for a valuation of $8 billion to $9 billion and a raise of at least $800 million, according to Bloomberg, as republished by Business Standard, and PA. The Wall Street Journal, Reuters and the Financial Times also reported the $9 billion target. The price range will be in a prospectus due in early October.
Airtel Africa owns 77.85% of the business and plans to remain a long-term shareholder. TPG, Mastercard, the Qatar Investment Authority and Chimetech bought minority stakes in 2021 for a combined $550 million, Business Standard reported. The filing also describes an agreement under which the World Bank's International Finance Corporation will buy up to £67.2 million ($90 million) of shares from existing holders at the final price.
The numbers behind the price tag
The company disclosed enough figures to test the valuation:
| Metric | Figure | What $8-9 billion implies (our math) |
|---|---|---|
| Revenue, year to March 2026 | $1.3 billion | About 6.2 to 6.9 times revenue |
| EBITDA margin | About 50% | EBITDA near $650 million, so about 12 to 14 times EBITDA |
| Value processed, 12 months to June | $213 billion | Revenue equals about 0.6% of the money it moves (periods differ slightly) |
| Monthly active users, June 30 | 53 million | About $150 to $170 of value per active user |
One discrepancy: PA reported revenue of about $1.4 billion last year, while Business Standard, citing the company, gave $1.3 billion. Using $1.4 billion would bring the revenue multiple down to about 5.7 to 6.4 times. The prospectus should settle which figure is right.
The smaller raise is the real signal. Bloomberg said Airtel Money had previously hoped to raise $1.5 billion to $2 billion. At least $800 million is roughly 9% to 10% of the target valuation. That is close to the minimum: CEO Ian Ferrao told PA the offer would be at least 10% of market value under exchange rules. Selling only the required minimum lets holders test the price before they sell more. It also leaves a thin free float, which can make a new stock swing more in its first months.
Why London cares
London IPOs have raised less than $700 million so far this year, according to Bloomberg data. That means this one deal, even at the reduced size, would more than double the year's total and would be the UK's largest IPO since 2021. Ferrao said the business is "debt-free, capital-light, and highly cash-generative," and that is why no new capital is being raised. The risk factors in the filing include currency swings, high inflation in some markets, cybersecurity, and disruption from the Middle East conflict and the Strait of Hormuz.
What traders are watching
Airtel Africa closed at 310.2 pence in London on Wednesday, down 0.6%, according to Yahoo Finance data. Its 52-week range is 219 to 436.2 pence. Because it owns most of Airtel Money, the price range in the prospectus will give investors a public market value for the stake for the first time. Holders of the parent will compare that value with the parent's own market value. The five bookrunners are Citigroup, Barclays, Bank of America, Goldman Sachs and JPMorgan. For other recent listings, see our stocks coverage.
Sources: Business Standard; Bloomberg via Business Standard; PA via Yahoo Finance UK; WSJ; Yahoo Finance price data. Multiples are our calculations from company figures. This is market information, not investment advice.
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