Airtel Money sets £5.3bn valuation ahead of London IPO

AIRTEL Africa’s mobile money subsidiary, Airtel Money, has set an offer price of £1.96 per share, implying a market capitalisation of £5.3 billion ($7 billion) ahead of its planned listing on the London Stock Exchange on October 14.

The pricing gives investors a clearer valuation benchmark for one of Airtel Africa’s fastest-growing businesses and could sharpen the market’s assessment of the value embedded in the telecoms group, which is listed on both the Nigerian Exchange (NGX) and London Stock Exchange.

Under the offer, certain existing shareholders are expected to sell 270 million Airtel Money shares, with a further 27 million shares available under an over-allotment option. Airtel Africa is not expected to sell its existing Airtel Money shares except under the over-allotment arrangement and intends to remain a long-term strategic shareholder.

About 16.5 percent of Airtel Money’s issued ordinary share capital is expected to be held in public hands after the offer, rising to approximately 17.5 percent if the over-allotment option is fully exercised. The company also expects its free float to make it eligible for inclusion in the FTSE UK indices.

The proposed valuation comes as Airtel Money continues to deliver strong operating growth. Airtel Africa reported that the business had 54.1 million customers as of March 2026, representing a 21.3 percent increase from the previous year. Transaction processed value reached $196 billion, while mobile money revenue rose 28.4 percent in constant currency to $1.355 billion. Airtel Money also had 2.4 million active agents.

The latest quarterly performance indicates that momentum has continued. Airtel Money customers increased to 56.5 million by June 2026, while annualised transaction processed value rose 51.5 percent to more than $245 billion. Mobile money revenue increased 38.9 per cent in reported currency to $404 million, according to Airtel Africa’s Q1 2027 results.

The growth has made the fintech operation an increasingly important component of Airtel Africa’s broader business. The group reported total revenue of $1.853 billion for the June quarter, with EBITDA rising 36.6 percent to $928 million.

For NGX investors, the London flotation could provide an independent market reference for the value of Airtel Africa’s fintech franchise. Since Airtel Africa intends to retain its strategic interest, the parent company will continue to have exposure to Airtel Money’s future performance after the listing.

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The transaction also comes as Airtel Africa continues to expand its digital ecosystem across its 14 African markets. The company’s strategy identifies accelerating Airtel Money adoption as one of its key growth priorities, alongside network expansion, digitalisation and broader financial inclusion.

The proposed £5.3 billion valuation therefore puts a significant price tag on a business that has expanded rapidly through mobile payments, transfers, merchant services, savings, lending and other financial products.

Airtel Africa’s September 30 share-capital disclosure showed 3.630 billion ordinary shares in issue, including 6.14 million shares held in treasury. The number of voting rights available to shareholders stood at 3.624 billion.

The immediate focus for investors will now shift to Airtel Money’s prospectus and its performance after admission. The prospectus is expected to provide further details on the business, financial position, risks and ownership structure surrounding the flotation.

A successful listing would give Airtel Money direct access to international equity investors while allowing Airtel Africa to retain strategic exposure to the fintech business.

For the Nigerian capital market, the development also highlights the growing importance of fintech within the valuation of Africa’s large telecommunications groups. Airtel Money’s £5.3 billion pricing now gives shareholders and analysts a concrete reference point with which to assess the value of the business within Airtel Africa.

Airtel Africa is scheduled to release its half-year results for the six months ending September 2026 on October 30, 2026, providing the next major financial update for investors.