Airtel Africa Plc, the continent’s second-largest telecommunications company, is contemplating a significant move that could shape the future of its mobile money division.
Sources close to the matter have revealed that the company is considering an initial public offering (IPO) for its mobile money unit, an endeavor that could potentially value the unit at over $4 billion.
What’s Happening?
The telecommunications giant has reportedly engaged in talks with potential advisors, aiming to list Airtel Money as early as this year.
While details are still preliminary and subject to change, it’s been disclosed that the company is exploring various options for the IPO. These include considering bourses in locations such as the United Arab Emirates, London, and Europe.
Despite these discussions, the decision to go ahead with the offering is not yet final. According to sources, Airtel Africa might ultimately opt against the IPO. Factors such as the timing of the potential IPO and the final valuation of the unit are still being deliberated.
Previous Investments
In 2021, TPG, a global investment firm, injected $200 million into Airtel Money, valuing the unit at $2.65 billion. This move was followed by a $100 million investment from MasterCard Inc. These strategic investments signified a vote of confidence in the potential growth and value of Airtel Money.
The rise of Airtel Money
Airtel Money has emerged as the fastest-growing division within Airtel Africa, gaining significant traction in key markets. Notably, the service has expanded its offerings in Nigeria, the company’s largest market.
In a landscape where the government is actively promoting cashless transactions, Airtel Money has positioned itself as a key player in facilitating digital payments.
The move towards an IPO comes at a time when Africa’s fintech sector is experiencing rapid growth. With a burgeoning young population increasingly turning to technology for banking services, Airtel Money finds itself in a favorable position.
The mobile money service, operational in 14 markets across the continent, reported a transaction value of $56 billion in the first half of 2024, according to its official website.
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