Airtel Africa Plc has picked Citigroup Incorporated as advisors for the planned Initial Public Offering (IPO) of its mobile money unit scheduled for listing n the first quarter of 2026.
Recall that Business Post reported in March 2024 that the mobile network operator was considering selling the shares of its mobile money arm, Airtel Money, to the public through the IPO vehicle in a transaction expected to raise about $4 billion.
According to Bloomberg, which first reported the move at the time, the firm has been in talks with possible advisors for a planned listing of the shares from the initial public offer on a stock exchange, which is yet to be decided.
It was reported that some considerations include London, the UAE, and Europe, as Airtel Money needs to be separated from its parent as a standalone entity before it can attain the prestige of trading on a stock exchange.
Now, the publication on Tuesday reported that telco is now working with the Wall Street bank and is meeting investors in Dubai, the United Arab Emirates (UAE) this week.
Estimating the company at $4 billion is higher than its valuation of $2.65 billion in 2021, after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion. Also, in 2024, Qatar’s sovereign wealth fund took a stake in the subsidiary.
This is hinged on continued expansion of the subsidiary which grew to 45.8 million customers as of the quarter ended June, with an annualized transaction value of $162 billion.
In Nigeria, the pace of growth for the mobile money business has been quickened by the launch of its SmartCash Payments Service Bank (PSB), which has witnessed dramatic adoption in its three years of operation, helped by concerted efforts by the central bank to drive cashless transactions.