Airtel Africa to sell shares to Nigerians at N454 per share

Airtel Africa Plc, the second largest telecommunications group in Africa is set to sell its shares to Nigerian investors at between N363 and N454 per share.

The company in an offer prospectus obtained by our reporter in Lagos said the shareholders’ offer was part of its global offer to raise 750 million dollars.

The company said the shares would be offered to high networth investors and institutional investors through book building.

Book building is a process used by companies to raise capital through public offerings, both initial public offers (IPOs) or follow-on public offers (FPOs), to aid price and demand discovery.

The offer price is determined after the bid closure based on the demand generated in the process.

It said the company’s shares would be listed on the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE) after the book building.

It was reported that the company plans to offer 501.125 million and 716.406 million shares to Nigerians.

The directors, according to the prospectus, believes that offering the shares in Nigeria and listing on the NSE would encourage operational discipline through the establishment of an independent capital structure and governance framework following the successful turnaround of the Group’s operations.

It added that it would introduce an optimal capital structure and enable improved leverage for greater flexibility in pursuing growth opportunities going forward.

The prospectus stated that listing on the exchange would provide access to the capital markets and diversification of the Group’s capital base to
support its continued growth.

The company noted that the net proceeds of the offer would principally be for debt reduction.

The issuing houses for the offer are Barclays Securities Nigeria and Quantum Zenith Securities Investments Limited.

It said the application had been made to the NSE for the Ordinary Shares to be admitted to the official list of the NSE.

“An application for the Ordinary Shares of the Company to be listed on the official list will be done pursuant to the cross-border listing requirements of the NSE.

“It is expected that the Nigerian Admission will become effective on 4 July 2019 and that unconditional dealings in the Ordinary Shares will commence on The NSE on 4 July 2019.

“The Nigerian offer is subject to the satisfaction of conditions, which are customary for transactions of this type including Nigerian Admission becoming effective on 4 July 2019.

“There shall be no underwriting arrangement for this offering,” it said.

It was reported that the Securities and Exchange Commission (SEC) on June 18, confirmed that the company had filed an application for listing on the exchange.

A senior management source who pleaded anonymity confirmed the development to our reporter in Lagos.

He noted that the application was filed by the company this June, adding that, the commission was presently looking at it in line with its rules and regulations.

The source said SEC would continue to protect the interest of investors in the market in line with its mandate to regulate and develop the capital market.