Friday, June 21 2019
10:40AM / United Capital Research / Header Image Credit: Digest Africa
Earlier, Airtel Africa Plc ("the Company")
released the prospectus for a global Initial Public Offer (IPO) of ordinary
shares worth $780mn (or N270.0bn). The expected price of the offer is set at a
range of 80 pence and 100 pence/share or (£0.8-£1.0/share). The Company is
expected to be admitted to the premium listing segment of the main board of the
London Stock Exchange (LSE) at the end of the transaction. Additionally, a
Nigerian offer of the issue is opened at an offer price expected to be between N363
and N454/share (technically a naira conversion of the pounds sterling expected
price per share) which will be followed with a secondary market listing on The
Nigerian Stock Exchange (NSE).
What Nigerian investors need to know
about Airtel IPO:
* Airtel Africa is raising approximately $750mn from the global issue
including proceeds from the Nigerian offer (this offer is 14.0% and 18.9% of
the issued ordinary share capital, depending on the offer price.
* In addition, ordinary shares worth
10% of the total number of offer shares, may be made available by the Company
pursuant to an over-allotment option described in the prospectus.
* The proceeds from the issue of the
ordinary shares are proposed to be principally used for the deleveraging the
Company’s balance sheet, particularly, to achieve a targeted leverage ratio of
* The Nigerian offer (or ‘The Offer’)
will be offered in Nigeria through a ‘book-building’ exercise pursuant to Rules
320 to 323 of the Nigerian SEC Rules, to determine the issue price and the
level of demand.
* The interested individual in the
Nigerian offer will be deemed to have represented and agreed that it is either
a ‘High Net Worth Investor (HNI)’ or a ‘Qualified Institutional Investor (QII)’
as such terms are defined in Rule 321 of the Nigerian SEC Rules.
* All ordinary shares subject to The
Offer will be issued or sold at the offer price, which will be determined by
the Company, following a book building process and in consultation with the
Joint Global Co-ordinators.
* The price range stated above
(between N363 - N454/share) is indicative only and may change in the course of
The Offer or be set within, above or below the price range.
* A number of factors will be
considered in determining The Offer price, share size and the basis of
allocation. This will include the level and nature of the demand for The Offer
during the book-building process and prevailing market conditions.
* The Nigerian Offer is not
* Application has been made to the
Nigerian SEC for the registration of all of the ordinary shares to be issued in
connection with The Offer and to the council of the NSE, to be listed and
admitted to the official trading list of the NSE.
* There are no restrictions on the
free transferability of the Nigerian Offer Shares.
* In relation to the Nigerian Offer
and the listing on the NSE, Barclays Securities Nigeria Limited and Quantum
Zenith Capital & Investments Limited have been appointed as Nigerian joint
issuing houses. Greenwich Securities Limited and Chapel Hill Denham Advisory
Limited have been appointed as Nigerian receiving agents.
Expected timetable of principal events
for the Nigerian Offer
Announcement of the offer
price, offer size, the publication of the pricing statement and allocation of
Allotment of new ordinary
shares to the shareholders
Crediting of ordinary shares
Nigerian listing and start of
unconditional dealings on the NSE
N.B: It should be noted that, if UK Admission does not
occur or unsuccessful, all conditional dealings will be of no effect and any
such dealings will be at the sole risk of the parties concerned. Temporary
documents of title will not be issued. UK Admission shall not be conditional on
Nigerian Admission, but the Nigerian Admission shall be conditional upon the UK
Admission. There can be no assurance that Nigerian Admission will occur on the
date indicated above or at all.
Download Here - Airtel Africa Initial Public
Offer - Prospectus
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