Airtel Africa Mulls IPO for Mobile Money Unit, Eyeing $4 Billion Valuation

Airtel Africa Plc, led by billionaire Sunil Mittal, is contemplating an initial public offering (IPO) for its mobile money unit, Airtel Money, in a move that could potentially value the division at over $4 billion.

Sources familiar with the matter revealed that discussions have been held with potential advisers regarding the IPO, with considerations for a listing as early as this year.

While Airtel Africa has not made a final decision on the listing venue, executives are reportedly exploring options across bourses in the United Arab Emirates, London, and Europe.

However, it is cautioned that the firm might ultimately choose not to proceed with the offering, and details regarding the timing and valuation of the IPO remain preliminary.

Airtel Money stands as the telecom operator’s fastest-growing division, experiencing significant traction in Nigeria, its largest market.

The expansion of its mobile money services in Nigeria aligns with the government’s efforts to promote cashless transactions, driving the division’s growth trajectory.

The potential IPO comes on the heels of previous investments in Airtel Money, with TPG injecting $200 million at a valuation of $2.65 billion in 2021, alongside a $100 million investment from MasterCard Inc.

The wireless carrier had previously hinted at a possible listing for the business within four years.

Africa’s burgeoning fintech landscape, coupled with a young population increasingly adopting digital banking solutions, presents a fertile ground for Airtel Money’s expansion.

As of the first half of 2024, Airtel Money recorded a transaction value of $56 billion across its operations in 14 markets, reflecting its significant market presence and potential for further growth.