Bharti Airtel trades 1% lower after African arm sets IPO issue price

Shares of Bharti Airtel are trading lower by 1% on December 26 after its African arm set the issue price for the Airtel Malawi initial public offering.

Airtel Africa Plc, which has presence in 14 countries across Africa, on December 11, had said it would float its local business Airtel Malawi Plc subsidiary) on the Malawi Stock Exchange.

Airtel Africa intends to raise about $37.5mn through a public issue of its local business, Airtel Malawi.

The price for the IPO has been set at Malawian Kwacha (MK) 12.69 ($0.021) per ordinary share. The IPO is expected to comprise of 165,00,00,000 shares, representing 15% of the issued share capital. An additional 55,00,00,000 shares, representing 5% of the issued share capital will be made available subject to the exercise of the over-allotment option.

The subsidiary expects to raise gross proceeds of approximately up to MK 27.92bn ($37.5mn) and the price implies a market capitalisation on admission of MK 139.59bn ($187.4mn).

Bharti Airtel Ltd is currently trading at Rs452.45 down by Rs4.9 or 1.07% from its previous closing of Rs457.35 on the BSE.

The scrip opened at Rs455.30 and has touched a high and low of Rs456.75 and Rs451.55 respectively. So far 16,16,355 (NSE+BSE) shares were traded on the counter.

The current market cap of the company is Rs2,34,710.28cr.

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