Airtel announced that its unit Airtel Africa plans to raise gross proceeds of USD 750 million through its listing on the main market of the London Stock Exchange. In a statement, the operator confirmed it was going ahead with the listing and would freely float at least 25 percent of shares in Airtel Africa, with a further 15 percent of shares made available under an overallotment option. Airtel Africa is also considering a listing of its shares on the Nigerian Stock Exchange.
The company intends to use the net proceeds from the issue to reduce debt. Following the sale, Airtel Africa expects to have a net debt ratio of 2.5x EBITDA. It has committed to pay out at least 80 percent of free cash flow to shareholders as long as net debt stays at 2-2.5x. The first dividend will be paid after its interim results for the six months to September.
