Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, has announced the intention to undertake an initial public offering of its local business, Airtel Malawi plc.
Airtel Malawi plc intends to apply for admission of its ordinary shares to trading on the main market of Malawi Stock Exchange. The indicative price range in respect of the Offer, as well as the exact number of Shares to be sold in the Offer, will be determined in due course. The Subsidiary will offer its shares for sale subject to relevant regulatory approvals and market conditions.
This listing will enable the Subsidiary to comply with Section 35 of the Communications Act of 2016, Regulation 26 (2) of the Communications (Telecommunications and Broadcasting Licensing) Regulations of 2016 and Clause 42.2 of the Subsidiary’s operating license, which requires the Company to have 20% local Malawian shareholding.
Airtel Africa, the second largest mobile operator in Africa by number of active subscribers, offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
The Group continuously invests in expanding its network footprint and number of 4G sites to enhance network capabilities and support its future business growth, offering traditional mobile voice services, with an increasing focus on data and mobile money.
Airtel Africa is well positioned to capture growth opportunities presented by promising underlying macroeconomic and demographic trends in a fast-growing region that is vastly under penetrated in terms of mobile and banking services. The Group’s footprint is characterized by low but increasing levels of mobile connectivity, with a unique user penetration at 44%, highlighting the potential for growth across its footprint.
The Subsidiary has engaged Standard Bank (Malawi) Plc to act as Book runner and as Lead Transaction Advisor to the company.