National Wire About Nigerians, Nigerian Business and Other Stories
Retail investors have opted for the use of special purpose vehicles (SPVs) to aggregate funds and buy into the ongoing initial public offering (IPO) by Airtel Africa Plc. Airtel Africa Plc is raising up to N325.25 billion in a combined global and Nigerian IPOs.
Airtel Africa, the parent company of Airtel Networks Limited, Nigeria’s second largest telecommunication company, plans to list its shares on the London Stock Exchange (LSE) and Nigerian Stock Exchange (NSE).
Airtel Africa, a subsidiary of India’s Bharti Airtel Limited, is offering between 501.13 million ordinary shares of $1 each and 716.41 million ordinary shares of $1 each at indicative price range of between N363 per share and N454 per share.
The IPO, being undertaken through a book building, is, however, restricted to qualified institutional investors and high net worth investors (HNIs). Under the rules in Nigeria, a high networth investor is defined as an individual with net worth of at least N300 million excluding automobiles, homes and furniture.
This implies that only individuals and institutions with a minimum assessable investment of N300 million can participate directly in the IPO. The IPO, which opened on June 18, 2019, is scheduled to close on Thursday June 27.
Photo Caption: Airtel Logo
