Airtel Expects To Raise $37.5m In Malawi IPO
Airtel Africa Plc has revealed that it expects to raise approximately $37.5m in its Initial Public Offering (IPO) in Malawi.
Airtel had earlier announced its plans to undertake an IPO in Malawi.
It said that the listing would enable its Malawian subsidiary to comply with the country’s telecoms regulations which require the company to have at least 20 percent local Malawian shareholding.
The notice which was filed at the Nigerian Stock Exchange (NSE) on Tuesday revealed that the set price for the Malawi IPO was $0.02 (MK12.69) per ordinary share.
Airtel noted that the offer was expected to compromise around 1.65 billion shares, representing 15 percent of the issued share capital.
It said that the additional 550 million shares, which represent five percent of the issued share capital, would be made available but would be subject to the exercise of the over-allotment option.
According to the notice, Airtel Malawi aims to raise gross proceeds of up to $37.5m (MK27.92bn), which implies a market capitalisation on admission of approximately $187.4m (MK139.59bn).
It said that the prospectus of the offer is available on its website.
According to the prospectus, when it is fully subscribed, the listing will enable Airtel Malawi to comply with the Malawian laws.
Credit: This article originated from www.nigeriacommunicationsweek.com.ng