Airtel Africa has announced that the initial public offering of its subsidiary in Malawi was a success, as the offering was fully subscribed.
Pageone had reported that the telecommunication company planned to list its shares in the Southeastern African nation.
In December, Airtel Africa had said it would raise $37.5 million in Malawi Stock Exchange through an initial public offering, allowing the Malawian investing public to own 20% shares of the network provider. The listing, according to the parent company, was fully subscribed.
The total number of shares offered was 2.2 billion, which represents 20% of shares outstanding, a statement made available on the Nigerian Stock Exchange (NSE) revealed.
Airtel Africa added that “The price has been set at MK 12.69 (USD 0.02) per ordinary share resulting in gross proceeds of approximately MK 27.92 billion (USD 37.5million).”
Why Airtel Africa listed in Malawi? Airtel Africa listed its shares in Malawi in order to comply with the laws of the country. Section 35 of the Communications Act of 2016, regulation 26 (2) of the communication (Telecommunications and Broadcasting Licensing), Regulations of 2016 and Clause 42.2 of the Subsidiary’s operating license requires the company to have at least 20% local Malawian shareholding.