Airtel Money skips African exchanges for London

What the report says

Airtel Money, the mobile money business linked to Airtel Africa, began trading on the London market on Friday with a valuation of about £5.3 billion ($7 billion), according to Uganda Business News. The company operates in 13 countries, including Uganda, but did not pursue a listing on African exchanges. The report said shares briefly rose above the 196p offer price before easing later in the day.

The listing involved the sale of existing shares by several shareholders, including Rise Fund, Qatar Holding, Mastercard and Chimetech. Airtel Africa did not sell shares and Airtel Money itself did not receive proceeds from the offer. The article said the company raised about £529 million for the sellers, with the final net amount slightly lower after costs and related arrangements. It also noted that the shares were sold under lock-up rules that limit further disposals for a period after admission.

Uganda is one of Airtel Money’s most important markets. The prospectus figures cited by the publisher said the country generated about $296 million in revenue in the year to June, around a fifth of Airtel Money’s total, and that monthly active users in Uganda rose from 9.6 million to 11.8 million. The report also said Airtel Money’s valuation is far larger than Uganda’s domestic stock market, highlighting the gap in scale and liquidity between London and local African exchanges. More broadly, the piece suggested the choice of London reflected investor demand and the limited depth of many regional markets.