Breaking: Airtel Africa Lists on the NSE at N363 Per Share, Emerges Third-Largest Stock

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SWITZERLAND, JULY 09: Telecoms giant, Airtel Africa listed on the Nigerian Stock Exchange(NSE) on Tuesday.

Today’s Echo gathers that the company entered the NSE in a flotation that valued it at 1.364 trillion naira, making it the bourse’s third-largest stock by market capitalisation.

India’s Bharti Airtel offered shares in its African unit two weeks ago via a London IPO and said it would dual list in Nigeria, its biggest market in Africa. It listed the shares at 363 naira each in Lagos.

Last Friday, the NSE had postponed the listing of Airtel’s shares barely two hours to the initial planned time.

The bourse announced the postponement of the listing, saying there were processes yet to be followed by the firm.

The NSE, in a statement on Friday, said, “The cross-border secondary listing of 3,758,151,504 ordinary shares of Airtel Africa Plc has been postponed from the scheduled date of Friday, July 5, 2019.

“This postponement was necessitated by the need to ensure that the company meets all the post NSE approval pre-requisites for listing on the NSE.”

According to business media platform, Proshare, key highlights from the company’s IPO memorandum include:

  • Second largest mobile operator in Africa by number of active subscribers with a well-diversified footprint spanning 14 Africa countries and serving an aggregate of 98.9 million subscribers and 14.2 million mobile money customers.
  • Nigeria represents the group’s largest single country subscriber base, accounting for 37.6% of the firm’s total subscribers as at FY 2019 (end-Mar), with 43.4% of subscribers in East Africa (Uganda, Rwanda, Kenya, Tanzania, Malawi and Zambia) and the remaining 19.1% in the Rest of Africa (DR Congo, Rep. of Congo, Gabon, Chad and Niger Republic) segment.
  • Airtel operates in three main business lines, mobile voice, mobile data and Airtel Money.
  • Mobile voice – The mobile voice business line comprises pre- and post-paid wireless voice services, international roaming, fixed-line telephone services and interconnect revenue paid to the group by other telecommunications providers. The mobile voice business line is the largest component of Airtel’s revenue, representing 66.4% and 62.2% in 2018 and 2019, respectively.
  • Mobile data – mobile data business line comprises data communications services, including 2G, 3G and increasingly, 4G data services, and other Value-Added-Services for mobile subscribers. The mobile data business line accounted for 18.9% and 22.2% of Airtel’s revenue in 2018 and 2019, respectively. On an aggregated basis, the mobile business lines before inter-product elimination and including infrastructure tower sharing income accounted for 94.8% (95.4%) of the Airtel’s consolidated revenue and 92.7% (95.2%) of the group’s underlying EBITDA in 2019 (2018).
  • Airtel Money – Mobile money services, offered under the Airtel Money brand, are an increasingly important part of the group’s service offerings. Airtel Money services are available across the group’s footprint in which Airtel serves 14.2 million customers. In Nigeria, Airtel offers Airtel Money services in partnership with a local bank and has applied for a mobile banking licence. The Airtel Money business line before inter-product elimination accounted for 7.6% of the group’s consolidated revenue and 7.3% of the group’s underlying EBITDA in 2019.

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