Airtel Africa Appoints 8 Global Banks For IPO

Bharti Airtel’s subbsidiary in Africa, Airtel Africa has appointed eight global banks to assist the firm in its upcoming IPO. The banks selected are J.P. Morgan, Citigroup, BofA Merrill Lynch, Absa Group Limited, Barclays Bank PLC, BNP Paribas, Goldman Sachs International and Standard Bank Group.

The Indian telecom behemoth is planning to list its African subsidiary in an international stock exchange and the required formalities are being put in place.

Earlier the company had announced that its shares in Airtel Africa were already subscribed by by six leading global investors comprising of Warburg Pincus, Temasek, Singtel, SoftBank Group International and others for an aggregate consideration of $1.25 billion. Airtel Africa had also constituted a new Board of Directors that includes representatives from Bharti Airtel and the investors specifically for this purpose.

“The new Board of Directors brings a wealth of industry and governance experience to further drive the Airtel Africa business,” the company had said.

Airtel claims the financial performance of Airtel Africa continues to improve, having turned positive in terms of net profit and operating free cash flow.

As per the October 2018 Quarterly Report, during the second quarter ending 30 September 2018, Airtel Africa’s revenues grew in constant currency by 10.8% Y-o-Y, led by growth in data and Airtel money transactions. Mobile data traffic expanded by 53% to 89 Bn MBs Y-o-Y. While data customer base increased by 32.1% to 27.1 Mn, Airtel Money customer base increased to 12.9 Mn, boosting the total transaction value on Airtel Money platform by 31% to $ 6.3 billion. The Company also witnessed an improvement of EBITDA margin by 3.9% Y-o-Y to 37.1%.

Airtel Africa Limited is a pan-African telecommunications company with operations in 14 countries across Africa. Airtel Africa is driven by the vision of providing affordable and innovative mobile services to all, and is supported in pursuing this vision by its largest shareholder, Bharti Airtel. Its product offerings include 2G, 3G and 4G wireless voice and data services and mobile commerce through ‘Airtel Money’.

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