How You Can Acquire Shares In The Forthcoming Airtel’s IPO

June 22, 2019

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How You Can Acquire Shares In The Forthcoming Airtel’s IPO

Airtel Nigeria has officially filed an application with the Securities and Exchange Commission for the listing of its shares on the Nigerian Stock Exchange.

The parent company of Airtel, Bharti Airtel, in its filing in London on Monday, said that it intended to list the shares on the NSE at the same time with the listing of its Africa unit at the London Stock Exchange.

It, however, said its plans were subject to regulatory approval of the SEC and the NSE.

Its African unit had been set at a share price of 80 to100 pence a share for its initial public offer on the LSE to raise about $750m.

However, SKYTREND NEWS gathered that only high net-worth individuals and institutional investors that have a minimum of $3 million in investable assets will be offered shares in the upcoming initial public offers (IPO) of Airtel Africa.

According to the listing prospectus made available by the company, this $3 million investable asset will be outside the primary residence of the investors, reports TheCable Newspaper.

Airtel said it would offer between 501.125 million and 716.406 million shares to Nigerians through book building.

Book building is a process used by companies to raise capital through public offerings, both initial public offers (IPOs) or follow-on public offers (FPOs), to aid price and demand discovery.

The offer price, which is currently estimated to be between N363 and N454 per share, will be determined after the bid closure based on the demand generated in the process.

The company hopes to raise $750 million thorough listings on the Nigerian Stock Exchange and London Stock Exchange.

The offer price is determined after the bid closure based on the demand generated in the process.

Proceeds from the offer would principally be for debt reduction.

“An application for the Ordinary Shares of the Company to be listed on the official list will be done pursuant to the cross-border listing requirements of the NSE,” it said.

“It is expected that the Nigerian Admission will become effective on 4 July 2019 and that unconditional dealings in the Ordinary Shares will commence on The NSE on 4 July 2019.

“The Nigerian offer is subject to the satisfaction of conditions, which are customary for transactions of this type including Nigerian Admission becoming effective on 4 July 2019.

“There shall be no underwriting arrangement for this offering.”

The issuing houses for the offer are Barclays Securities Nigeria and Quantum Zenith Securities Investments Limited.