Investors in Malawi Buy $37.5m Airtel Africa Shares via IPO

By Modupe Gbadeyanka

One of the leading mobile network operators on the continent, Airtel Africa Plc, has announced raising the sum of $37.5 million from an initial public offering (IPO) in Malawi.

The telco said during the exercise, it sold a total of 2,200,000,000 shares to investors in the South Eastern Africa country.

In a notice, the company the amount of stocks it offered to sale at the IPO represented 20 percent of shares outstanding of the firm.

It further said the equities were sold at the IPO at MK 12.69, equivalent to $0.02 per ordinary share, resulting in gross proceeds of about MK 27.92 billion ($0.02).

“Airtel Africa Plc, a leading provider of telecommunications and mobile money services, with presence in 14 countries across Africa, further to its announcement on December 24, 2019, today announces the results of the Initial Public Offering (IPO) of its subsidiary, Airtel Malawi Plc, on the main market of the Malawi Stock Exchange.

“All ordinary shares offered in the IPO have been fully subscribed. The total number of shares amounted to 2,200,000,000, representing 20 percent of shares outstanding.

“The price has been set at MK 12.69 ($0.02) per ordinary share resulting in gross proceeds of approximately MK 27.92 billion ($0.02),” the statement signed by the Group Company Secretary, Mr Simon O’Hara, said.

Last year, Airtel Africa joined the Nigerian Stock Exchange (NSE) through a cross border secondary listing of 3,758,151,504 ordinary shares at a unit price of N363. Airtel Africa is the parent company of Airtel Nigeria, believed to be the second largest telco in the country after MTN Nigeria, which sells its stocks on the NSE and was also listed on the local bourse in 2019.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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