![AIRTEL office used to illustrate the story. [PHOTO CREDIT: Stackpreneur]](https://media.premiumtimesng.com/wp-content/files/2018/10/Airtel-Nigeria.jpg)
African telecommunications and mobile services provider, Airtel Africa, on Tuesday announced that the price for its Initial Public Offering (IPO) of its Malawian subsidiary on the Malawi Stock Exchange has been set at MK 12.69 (USD 0.02) per ordinary share.
The telecommunication company had earlier announced its intention to undertake an initial public offering of its local business, Airtel Malawi plc. The company applied for admission of its ordinary shares to trading on the main market of Malawi Stock Exchange.
On Tuesday, the company said the offer is expected to comprise 1.65 billion shares, representing 15 per cent of the issued share capital. An additional 550 million shares, representing 5 per cent of the issued share capital will be made available subject to the exercise of over-allotment options.
The subsidiary expects to raise gross proceeds of approximately MK 27.92 billion (USD 37.5 million) and the price implies a market capitalisation on admission of MK 139.59 billion (USD 187.4 millio n).
‘MK’ refers to the Malawian Kwacha, the southeastern African nation’s currency. As at 1:30 p.m. Nigerian time Tuesday, PREMIUM TIMES’ check showed that the MK sold at N0.49 Nigerian naira.
By implication, the telecommunication firm’s offering allows member of the pubic to own a part of the Malawian subsidiary of the company.
The company said that when fully subscribed, the listing will enable the 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 the Subsidiary’s operating license, which requires the Company to have 20 per cent local Malawian shareholding.
Airtel Africa, the second largest mobile operator in Africa by number of active subscribers, prides itself as offering an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
The group says it continuously invests in expanding its network footprint and number of 4G sites to enhance network capabilities and support its future business growth, offering traditional mobile voice services, with an increasing focus on data and mobile money.
The group’s footprint is characterized by low but increasing levels of mobile connectivity, with a unique user penetration at 44 per cent, highlighting the potential for growth across its footprint.
The subsidiary has engaged Standard Bank (Malawi) Plc to act as Book runner and as Lead Transaction Advisor to the company.
Support PREMIUM TIMES' journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: Call Willie - +2348098788999
![NOVA Merchant Bank. [PHOTO CREDIT: Official LinkedIn account of the bank]](https://media.premiumtimesng.com/wp-content/files/2020/08/NOVA-Merchant-Bank.jpg)
![Ondo State Governor Rotimi Akeredolu [PHOTO CREDIT: rotimiaketi]](https://media.premiumtimesng.com/wp-content/files/2020/07/IMG_20200701_003047_185-e1600430559515.jpg)
