Adedapo Adesanya
By Adedapo Adesanya
Airtel Africa Plc has announced its intention to list its shares on the Malawi Stock Exchange (MSE) as it prepares to undertake an Initial Public Offering (IPO) in the East African country.
A press statement issued by the company on Thursday stated that the shares would be for sale to public once all the necessary regulatory approvals have been obtained.
According to the statement, “Section 35 of the Communications Act of 2016, regulation 26 (2) of the communication, Regulations of 2016 and Clause 42.2 of the Subsidiary’s operating license requires the Airtel Africa to have at least 20 percent local Malawian shareholding.”
However, Airtel Africa did not disclose the exact date the IPO would commence, but revealed that the price range of shares will depend on the condition of the market while the exact number of shares to be sold would be determined as preparation progresses.
According to the statement, the subsidiary has engaged Standard Bank (Malawi) Plc to act as book runner and as Lead Transaction Advisor to the company’s proposed exercise.
This came as the telecommunication service listed on the Nigerian Stock Exchange (NSE) in July. Business Post had reported that the offer was of 3.7 billion shares valued at N363 per share. This sale was after the GSM service provider listed its equities on the London Stock Exchange (LSE) earlier this year.
The listing in Nigeria was on the heel of rival, MTN becoming the first telco to list on the NSE while Airtel followed two months later. There are also talks that Globacom could join the club in coming years.
If the company’s planned listing in Malawi is successful, it would mean Airtel Africa’s second listing in Africa.
Airtel Africa is the second largest telecommunication service provider in Africa. It has its presence in 14 African countries, including Nigeria, Kenya and Uganda and has about 33 million subscribers in Nigeria.
