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Bharti Airtel says Airtel Malawi plans to raise $37.5 million via IPO; shares slide

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Capital Market
Last Updated : Dec 26 2019 | 11:04 AM IST

Bharti Airtel was down 0.93% at Rs 453.10 after the company said Airtel Africa intends to raise about $37.5 million through a public issue of its local business, Airtel Malawi.

Airtel Africa plc, a leading provider of telecommunications and mobile money services, with presence in 14 countries across Africa, further to its announcement of 11 December 2019 of its intention to float its local business Airtel Malawi plc on the Malawi Stock Exchange, announced the price for the initial public offering (IPO).

The price for the IPO has been set at Malawian Kwacha (MK) 12.69 ($0.021) per ordinary share. The IPO is expected to comprise of 165,00,00,000 shares, representing 15% of the issued share capital. An additional 55,00,00,000 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 ($37.5m) and the price implies a market capitalisation on admission of MK 139.59 billion ($187.4m).

Airtel Africa, this June, made its debut on the London Stock Exchange, and raised $750 million.

The listing will help Airtel Malawi to comply with Malawi's Communications Act of 2016, which requires the subsidiary to have at least 20% local Malawian shareholding. The announcement was made after market hours on Tuesday, 24 December 2019.

Bharti Airtel reported a consolidated net loss (excluding extraordinary items) of Rs 23,044.90 crore in Q2 September 2019 compared with a net profit of Rs 118.80 crore in Q2 September 2018. Net sales rose 4.9% to Rs 21,131 crore in Q2 September 2019 from Rs 20,147.80 crore in Q2 September 2018.

The Bharti Airtel share touched its 52-week high of Rs 485.75 on 2 December 2019 and its 52-week of low Rs 269.25 on 5 February 2019.

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Currently, the stock is trading 6.72% below its 52-week high of Rs 485.75 hit on 2 December 2019. It is 68.28% above its 52-week low of Rs 269.25 hit on 5 February 2019.

Bharti Airtel is a global telecommunications company with operations in 17 countries across Asia and Africa.

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First Published: Dec 26 2019 | 10:11 AM IST

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