The telco stated this in a statement issued on the Nigerian and London Stock Exchange on Wednesday, December 11, 2019.
According to document papers, the Malawi unit has applied for admission of its ordinary shares to trading on the main market of the Malawi Stock Exchange. The indicative price range in respect of the Offer, as well as the exact number of shares to be sold in the Offer, will be determined in due course.
“This listing will enable the Subsidiary to comply with Section 35 of the Communications Act of 2016, Regulation 26 (2) of the Communications (Telecommunications and Broadcasting Licensing) Regulations of 2016 and Clause 42.2 of the Subsidiary’s operating license, which requires the Company to have 20% local Malawian shareholding,” the company said.
The subsidiary has engaged Standard Bank (Malawi) Plc to act as Book runner and as Lead Transaction Advisor while the deal awaits various regulatory approval.
Here is how Airtel is doing in East African market
The Malawi unit is one of the key businesses of the telecom firm in East Africa. East African market includes operations in Kenya, Uganda, Rwanda, Tanzania, and Zambia.
In the first six months ended September 30th, 2019, the group's revenue in East Africa increased by 5.8%, as constant currency growth of 11.1%, was partially offset by currency devaluation in Zambia and Malawi.
According to the financial statement, revenue growth of 11.1% in constant currency was driven by growth across all services.
The Malawi subsidiary also recorded double-digit revenue growth in constant currency as well as Kenya, Tanzania, and Zambia while voice revenue was up 4.6%, largely driven by customer growth of 9.1% and an increased usage per customer of 12.0%.
Five months ago, Airtel Africa listed on the Nigerian Stock Exchange in a N1.36 trillion ($4.4 billion) flotation, making it the bourse’s third-largest stock by market value.