Airtel Africa Plc (AIRTEL) IPO is now open. The book-building process (to determine the Offer Price) is expected to close on Thursday, June 27, 2019 while pricing will be announced on Friday, June 28, 2019.Please see below a summary of the terms of the Offer:
| Company | Airtel Africa | | Listing: | - Nigerian Stock Exchange (Secondary Listing) and London Stock Exchange (Premium Listing).
- UK Admission shall not be conditional on Nigerian Admission, whereas Nigerian Admission shall be conditional upon UK Admission. There can be no assurance that Nigerian Admission will occur on the date indicated above or at all.
| | Offer Type | Initial Public Offering | | Method of Offer | Book build – Participation restricted to qualified Institutional Investors and High Net Worth Investors. A High Net Worth Individual is defined as an individual with net worth of at least N300m excluding Automobiles, Homes and Furniture. | | Offer Opens | June 18, 2019 | | Offer Closes | June 27, 2019 | Expected Timetable of
Principal Events | - Announcement of Offer Price, Offer Size, publication of the Pricing Statement and allocation of Ordinary Shares – June 28, 2019
- Allot new Ordinary Shares to the shareholders – June 29, 2019
- Crediting of Ordinary Shares to accounts – July 3, 2019
- Nigerian Admission and start of unconditional dealings on The Nigerian Stock Exchange – July 4, 2019
| | Securities Offered | Ordinary Shares | | Currency | NGN | | Offer Price | N363 – N454 per ordinary share | | Offer Size | Between 501,125,542 to 716,406,927 Shares | | Expected Free-Float | At least 25%. Certain of the Company’s pre-IPO investors are expected to contribute towards the minimum 25% free float. | | Use of Proceeds | To reduce debt:- To achieve a targeted Leverage Ratio of 2.5x (prior to any proceeds from the Over-allotment Option) based on Underlying EBITDA for the year ended 31 March 2019 and composed of a targeted net debt (excluding finance lease obligations) to Underlying EBITDA ratio of 1.6x (prior to any proceeds from the Over-Allotment Option) and a targeted finance lease obligations debt to Underlying EBITDA ratio of 0.9x.
| | Dividend Policy | - The Company intends to distribute to its shareholders a minimum of 80 per cent of consolidated free cash flow as long as a ratio of net debt to EBITDA between 2 to 2.5 times is maintained, subject to all regulatory, statutory and monetary restrictions.
- At the individual operating country level, the Company will recommend to the local boards a dividend pay-out of a minimum of 80 per cent of the free cash flow at the country level as long as a ratio of net debt to EBITDA between 2.5 to 3.5 times is maintained, subject to all regulatory, statutory and monetary restrictions.
|
Financial Highlights | Income Statement (USD’ mn) | 2019 | 2018 | 2017 | 2019 y/y | | Revenue | 3,077 | 2,910 | 2,884 | 6% | | Other Income | 26 | 17 | 7 | 53% | | Operating Expenses | 2,369 | 2,375 | 2,718 | 0% | | EBIT | 734 | 552 | 173 | 33% | | Finance costs | -447 | -590 | -855 | -24% | | Finance income | 85 | 12 | 16 | 608% | | Non-operating income (net) | 0 | -14 | -14 | -100% | | Share of results of associate | 0 | -3 | 0 | -100% | | Profit / (loss) before tax | 372 | -9 | -652 | 4233% | | Tax (credit) / expense | -78 | 125 | 117 | -162% | | Profit / (loss) for the year | 450 | -134 | -769 | 436% | | | | | | | Ratios | | | | | | EBITDA margin | 43.4% | 42.6% | 39.5% | | | EBIT margin | 23.9% | 19.0% | 6.0% | | | OPEX margin | 77.0% | 81.6% | 94.2% | | | PAT margin | 14.6% | — | — | |
The documents below are available for your records/reference: |
|
