The upcoming flotation of Airtel Money has been widely regarded as a near certainty, representing the largest public listing in London in half a decade. However, financial observers urge caution in interpreting the move as a definitive turning point for the UK capital markets, particularly as competition for overseas listings intensifies.
While the deal is a positive development, it would be premature to declare that the city’s prolonged listing drought is over. Airtel Money is a payments processor active across thirteen African nations and is valued at an estimated £6bn to £7bn. The company is already well-established on the market, operating as a subsidiary that is 78% owned by Airtel Africa.
Airtel Africa is a constituent of the FTSE 100 index with a market capitalization of £11.3bn. The parent group is ultimately controlled by Bharti Enterprises, led by Indian billionaire Sunil Bharti Mittal, who also holds a 25% stake in BT. Consequently, the listing involves a firm that is already deeply embedded in the London stock exchange ecosystem rather than a new external entrant.
Interesting that competition from overseas exchanges is crowding out UK listings. Does this signal a long-term decline for the LSE?
Wait, Airtel Money is already 78% owned by a FTSE 100 company? I guess ‘listing’ is a bit of a stretch here.
Just a subsidiary spin-off, not a true newcomer. The drought clearly isn’t over yet, despite the headline hype.