Herbert Smith Freehills Kramer and A&O Shearman have taken the lead roles advising as mobile payments firm Airtel Money readies for a landmark London IPO.
Airtel Money, which filed its intention to float with LSEG on Wednesday (23 September), is a subsidiary of Airtel Africa, which floated on the London market in 2019.
The listing is reportedly looking to raise around $800m at a valuation of $8-9bn – a figure that would make the offering one of the largest seen in the UK after years of slowdown.
HSF Kramer is acting as lead counsel to Airtel Africa, which owns around 78% of Airtel Money. UK corporate governance advisory team head Gareth Sykes is leading on the matter.
The firm has previously advised Airtel Africa on a number of matters, including on investments in Airtel Money totalling $500m from TPG’s Rise Fund, Mastercard, and QIA in 2021.
A&O Shearman is advising Airtel Money, with a team led by global co-head of equity capital markets Adam Wells, UK equity capital markets co-lead Michael Bloch, and Dubai-based regional ECM practice lead Harsha Kumar.
Meanwhile, Gibson Dunn is advising the underwriters on the offering, with a team led by capital markets partner Ibrahim Soumrany in Riyadh and Dubai and London corporate partners Chris Haynes and Steve Thierbach.
Also on the firm’s team were tax practice co-chair Pamela Lawrence Endreny in New York, tax partner Benjamin Fryer, white-collar partner Patrick Doris and financial regulatory practice co-chair Michelle Kirschner in London, and Washington DC-based international trade advisory and enforcement co-chair Adam Smith.
Airtel Money allows users to deposit and withdraw cash into and from mobile accounts through a network of branches across Africa. Last year, it had over 50m customers and a reported revenue of nearly $1.36bn.
UK public markets have been subdued in recent years. After a post-Covid flurry of UK listings in 2021, including British fintech Wise’s £8bn direct listing, companies have opted for more lucrative capital markets in the US, with Wise shifting its listing to New York earlier this year.
The Financial Conduct Authority has made a number of changes in recent years as it seeks to encourage new listings, including allowing companies listing elsewhere to tap UK retail capital.
SpaceX took advantage of this opportunity earlier this year, with Latham & Watkins advising.
There are positive signs for UK capital markets, however, including Revolut’s signal that it is exploring a dual listing in the UK and the US.
According to a report from EY, the London Stock Exchange saw seven new listings in the first half of this year, which raised a total of £577m – up 215% on the £183m raised in the same period last year.
