Airtel Money boss: This is why we picked London for our float

The boss of Airtel Money has laid out his rationale for selecting London as his chosen venue after the firm unveiled plans for a multi-billion pound IPO that could be Britain’s biggest in years.

The African mobile payments business, which is controlled by Indian-owned telecoms group Airtel Africa, is reportedly seeking a valuation at as high as $9bn (£6.8bn).

The fintech, which operates via branches and kiosks across Africa and already has more than 50m active customers, expects to raise as much as $800m from investors.

Ian Ferrao, A Warwick graduate and former Vodacom executive who joined Airtel Money in 2019 before becoming chief executive in 2022, told City AM he “evaluated lots of exchanges” across Europe, North America and the Middle East over several months before settling on London as his top pick.

“There is clearly deep capital available in the London markets, and that’s apparent from all the investor outreach we’ve done. All the global institutions, long-only funds, and big hedge funds sit here in London, giving access to global investors,” he said.

“Second, there is a very good understanding of emerging markets, specifically financial services, fintech, and technology platforms. I found a deep understanding of our business and dynamics here.

“Lastly, Airtel Africa is home here and has been listed on the London Stock Exchange since 2019. They’ve been very successful and rewarded for their solid performance, so our brand is very well known in this market, which helps.”

The listing, which could become the biggest in London since the blockbuster Haleon spin-off in 2022, comes amid a dearth of IPOs in the capital as firms put plans on hold or snub London in favour of floating in New York.

Earlier this week it emerged that roadside assistance firm RAC had put the brakes on a £5bn London IPO in favour of a private sale, while software group Visma has pushed back plans for a London debut that could have valued the firm at over £15bn. Just seven companies have listed in London so far this year, raising a combined £577m.

Airtel’s decision to list in London had been reported as far back as April but the firm only this week confirmed it would be pressing ahead with plans.

“I wouldn’t say [there was a] delay, per se – we were still assessing which stock exchanges to go to late last year and early this year,” Ferrao said.

“There were some market disruptions earlier in the year with the Middle East conflict, which provided some uncertainty. However, over the last four to five months, it’s been full steam ahead on getting this IPO done in London.

“IPOs take time; there has been a lot of groundwork and investor outreach. Market conditions are probably more favorable now than they were earlier in the year.”