Airtel Malawi to raise $37.5m via IPO
Airtel Malawi plans to raise $37.5 million (Rs267 crore) from an initial share sale, even as the parent Bharti Airtel prepares for a $3 billion fund raising exercise to pay off thousands of crores of statutory dues in India.
“Airtel Africa, further to its announcement of 11 December 2019 of its intention to float its local business Airtel Malawi, on the Malawi Stock Exchange, has announced the price for the initial public offering (IPO),“ the company has said.
The price for the IPO has been set at MK 12.69 (USD 0.021) per Ordinary Share and the Offer is expected to comprise of 1,650,000,000 shares, representing 15% of the issued share capital.
The statement added that additional 550,000,000 shares, representing 5% of the issued share capital will be made available subject to the exercise of the over-allotment option.
“The Subsidiary expects to raise gross proceeds of approximately up to MK 27.92 billion ($37.5million) and the price implies a market capitalisation on admission of MK 139.59 billion ($187.4million )”, said the company.
Airtel Africa this June made its debut on the London Stock Exchange as well, and raised $750 million.
Bharti Airtel has been raising funds to reduce its overall debt at a time when the operator has to pay at least Rs 35,500 crore as statuary dues in January , following a Supreme Court verdict in October 24.
Bharti Airtel has been on an equity raising spree and recently announced its plans to raise $2 billion (Rs 14,200 crore) via an equity issue as part of a larger $3 billion fund-raising move in order to ease its balance sheet. The rest will be raised via debt.
The telco had raised Rs 25,000 crore earlier this year via a rights issue.