Airtel Africa Plc Initial Public Offer (IPO) share price is expected to be traded between N363 and N454 ordinary share, a report has disclosed.
Our gathered the telecommunication company y has commenced book-building on the Nigerian Stock Exchange (NSE) and London Stock Exchange and it is expected to determine the Offer Price of the company and the final price is to be announced this Friday.
The report gathered that the listing on NSE is of secondary Listing while on the LSE comes in form of premium listing.
Airtel Africa offer price is between 501,125,542 to 716,406,927 shares.
According to the company, “To achieve a targeted Leverage Ratio of 2.5x (prior to any proceeds from the Over-allotment Option) based on Underlying EBITDA for the year ended 31 March 2019 and composed of a targeted net debt (excluding finance lease obligations) to Underlying EBITDA ratio of 1.6x (prior to any proceeds from the Over-Allotment Option) and a targeted finance lease obligations debt to Underlying EBITDA ratio of 0.9x.”
The company reported profit before tax of $372 million in 2019 from a loss of $9million in 2018.
The company financial statement showed nine per cent increase in revenue to $3,077million in 2019 from $2,910 million in 2018.
The company said that conditional dealings in its shares were expected to begin on or around June 28 and the final pricing would be announced the same day.
The IPO for the London listing is expected to raise 595 million pounds ($749.05 million) from the issuance of about 595.2 million to 744 million new shares.
The company said the price range values it between 3.01 billion pounds and 3.62 billion pounds.
It will be recalled that MTN Nigeria last month got listed on the NSE via introduction on the premium board.
The company became the first telecommunications network provider to be listed on the NSE as it floated 20.35 billion units of ordinary shares at N90 per share, corresponding to a market capitalisation of N1.83 trillion as at May 16, 2019.
Barely a month after, the share price of MTN Nigeria climbed by 36.97per cent from its listing day close of N99 to N135.6 as at 14 June 2019. The June 14 close translated to a market CAP of N2.76 trillion as at 14 June 2019, thereby making it the second largest company in Nigeria in terms of market capitalisation (contributing 20.86 per cent to the NSE-ASI)
Source: Nigerian NewsDirect