(Ecofin Agency) - On 11 December 2019, the African branch of Indian telecom group Bharti Airtel, Airtel Africa, unveiled its intention to list part of its Malawi subsidiary on the local stock exchange. The listing price is set at MK12.69 (0.02 USD) per share.

According to the company, the offer is expected to comprise 1.65 billion shares, representing 15% of the issued share capital. A further 550 million shares, representing 5% of the issued share capital, will be made available subject to the exercise of over-allotment options. This option will enable Standard Bank Plc, the operation arranger, to meet the need in the event of strong investor demand for shares.

With the IPO, Airtel Malawi is expected to generate gross proceeds of about MK27.92 billion (USD 37.5 million) and achieve a market capitalization at a listing of MK139.59 billion (USD 187.4 million).

Airtel Malawi's IPO will enable it to comply with Section 35 of the Communications Act 2016, Section 26(2) of the Communications (Telecommunications and Broadcasting Licenses) Regulations 2016 and Section 42.2 of the subsidiary's operating license, which require that at least 20% of the capital of the telecom company be held by local investors.