Airtel Targets $37.5m in Malawi IPO

Airtel Africa Plc has said it expects to raise about $37.5m in its Initial Public Offering (IPO) in Malawi.

Airtel had earlier revealed its plans to undertake an IPO in Malawi.

It said the listing would enable its 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 its subsidiary’s operating licence, which required the company to have at least 20 per cent local Malawian shareholding.

The notice filed at the Nigerian Stock Exchange (NSE) on Tuesday revealed that the set price for the IPO was $0.02 (MK12.69) per ordinary share.

Airtel said the offer was expected to compromise 1.65 billion shares, representing 15 per cent of the issued share capital.

It said the additional 550 million shares, which represents five per cent of the issued share capital, would be made available, subject to the exercise of the over-allotment option.

According to the notice, Airtel Malawi hopes to raise gross proceeds of approximately up to $37.5m (MK27.92bn), which implies a market capitalisation on admission of $187.4m (MK139.59bn).

It said the prospectus of the offer was available on its website.

According to the prospectus, when fully subscribed, the listing will enable the subsidiary to comply with the Malawian laws.