What You Need To Know About Airtel IPO

airtel ipo

Airtel Africa Plc released its prospectus for a global Initial Public Offer (IPO) of ordinary shares worth $750mn (N270.0bn). The offer size translates to an addition of 595.2 million to 744.0 million ordinary shares to its current shareholding.

The Company expects to be admitted to the premium listing segment of the main board of the London Stock Exchange (LSE) at an offer price ranging between £0.8-£1.0/share. Also, the offer price for the Nigerian issue is expected to be within the range of N363 and N454/share, scheduled for listing on 4th of July.

 KEY INFORMATION FOR INVESTORS

  • ISSUER – Airtel Africa Plc
  • DOMICILE AND LEGAL FORM OF ISSUER – the United Kingdom, Public Company limited by Shares
  • ISSUING HOUSES – Barclays Securities Nigeria Limited and Quantum Zenith Securities & Investments Limited
  • METHOD OF OFFER – By way of book building
  • CURRENCY OF ISSUE – Nigerian Naira The currency of issue of Offer Shares sold pursuant to the Nigerian Offer shall be Naira.
  • OFFER PRICE – ₦363 to ₦454 (80 pence to 100 pence) The Offer Price for Offer Shares sold pursuant to the Nigerian Offer shall be determined by reference to the £:US$ last practicable date prior to pricing and may, therefore, differ from the indicative range set out herein
  • OFFER SIZE – 501,125,542 to 716,406,927 ordinary shares.
  • PURPOSE – The sole purpose of the issue is to deleverage the company’s balance sheet.
  • TYPE AND CLASS OF SECURITIES BEING ADMITTED TO TRADING – Ordinary shares of US$1.00 each ranking pari passu with other issued Ordinary Shares of the issuer
  • FUNGIBILITY STATUS: The shares listed on the NSE are fungible which means the shares can be traded on the London stock exchange (LSE)
  • NIGERIAN ADMISSION – Application has been made to Nigerian SEC and stock exchange (NSE) for registration of the Ordinary Shares set to be issued in connection with the offer.
  • EXPENSES CHARGED TO THE INVESTOR NOT APPLICABLE. – No expenses will be charged by the Company to any investor who purchases the Nigerian Offer Shares pursuant to the Nigerian Offer

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Baby Juliet’s Future

When 34-year-old Damola gave birth to her daughter, she felt that her life was finally complete. Baby Juliet was the apple of her mother’s eyes and Damola spared no expense in giving her the very best. As a single parent, it wasn’t easy for Damola to cope with the demands of heading the Customer Service department at work, building her side hustle and raising a child alone, but she faced these responsibilities like a superwoman.

Her friends and family tried to pitch in as often as possible but in the end, the bulk of the work lay with the mother of the child. Soon, Baby Juliet was old enough to go to school and what a rude shock Damola got when school fees, books, lessons and more were calculated. It would be a little cheaper should she opt for just any school, but she needed a school that had a good pedigree and was in close proximity to her office to enable her juggle movements seamlessly. The cost per term for Baby Juliet’s KG class came to N95000 when everything like music lessons, swimming classes, dance classes, books and more were calculated. But Damola wanted the best for her baby so she went with it.

But she eventually did some hard thinking. With each year her baby grew and with each new class she entered, she’ll be required to pay higher fees and maybe enroll in other extra-curricular activities which will definitely make fees much higher. She needed a sustainable plan to keep the level of education she desired for baby Juliet up so she called up her best friend Zara and told her what she had been thinking.

“Zara, I’ve done my math and the way things look, I think I need a good plan in place if I really want my baby to get the Ivy League education I plan for her. Do you know anyone who is an expert in these things?” she asked.

“Don’t think too much Dammy. I think I’ve come across one before. I was reading an article on Bella Naija the other day and this Trust Expert on the column Ask Shade was advising a woman with a similar problem. I think her advice will work for you too.” Zara responded.

“Oh really? What did she suggest to the woman?” Damola asked.

“She asked her to consider getting an Education Trust for her child which will cater to every educational needs of her child to whatever level she so desires. Interestingly, she mentioned that the Trust can also comprise of a lifestyle component to provide for other needs of the child like school trips, excursions or vacations.” Zara responded.

“This has a good ring to it” Damola replied. “What do you think babe? Should I give it a try?” she asked.

“Wait, are you really asking that Dammy? I think you should totally do that and enjoy peace of mind jare. Since me I’m still single and seriously searching, I will just pen it down as something to consider when I finally catch Mr. Right and have our golden baby…haha” Zara said.

“Crazy babe. So Mr. Right is now a fish you want to catch abi” Damola queried playfully…

(The two chat on excitedly about other matters…The End)

Secure your child’s educational future with an Education Trust today, not tomorrow, today!

Stock Recommendation for the Week , June 10

In a twist of events, the Nigerian Bourse closed negative last week, with the NSE ASI shedding 2.05% WoW to close at 30,432.13 points, with market capitalization dropping by N449.16 billion. The bearish sentiment was spurred by losses recorded across all sectors; Banking (-0.96%), Cement (-5.13%), Construction (-5.44%), Personal care (-2.62%), Food (-1.69%), Insurance (-1.48%) and Oil & Gas (-11.90%). Dissecting the sector performance reveals selloff across various stocks such as GUARANTY: -3.80%, DANGCEM: -5.26%, PZ: -9.26%, UNILEVER: -0.16%, DANGSUGA: -12.88%, SEPLAT: -6.64% and MTN: -0.33%.

• Dangote Cement Plc – STRONG BUY (FVE: N248.14): Dangote Cement Plc (Dangcem) Q1 2019 result showed decline in group revenue by 0.8% YoY to N240 billion, largely emanating from Nigeria. However, the high base of effective tax rate in the prior year, resulted in much softer decline for EPS to N3.54 from N4.23 in Q1 18. Going into 2019, we forecast slower growth in our PBT stemming from i) downward revision of our 2019 and 2020 volume forecast; ii) downward adjustment to revenue per ton; and (iii) reduction in our gross margin estimates to 57.8% from 58.3%.

• Seplat Petroleum Development Company Plc – STRONG BUY (FVE: N782.15). Seplat recorded a decline in EPS by 53% QoQ to $0.06 over Q1 19 following drop in revenue as well as increased over lift in the period and loss on derivatives. We have reduced our FVE on the stock following moderated expectation on capital allowance and increase in our cost per boe estimates which led to a reduction in our forecast 2019 EPS to $0.33 from $0.43.

• Guaranty Trust Bank Plc – STRONG BUY (FVE: N49.66): GTB Q1 19 revealed a double-digit expansion in EPS (+16% QoQ to N1.68) on the back of lower funding cost as well as strong NIR. Although, we expect a slower growth in EPS (+4% YoY to N6.53) over 2019, our case for GUARANTY remains the resilience in NIR, improved cost management, still strong loan book with a moderate expansion in credit loss provision to 0.5%.

• Fidelity Bank Plc – BUY (FVE: N2.92): Fidelity bank kicked off the year on a good note with the bank posting EPS growth of 17.2% QoQ to N0.21 largely due to support from a higher interest income and lower OPEX. Despite an expected decline in NIR for the bank, we expect Fidelity to record a modest growth in earnings over 2019 on account of our expectation of higher loan growth as well as moderation in funding cost. We forecast a 11% increase in EPS (N0.88) over 2019 and thus maintain our BUY rating with an FVE of N2.92.

• CCNN Plc – BUY (FVE: N22.87): We had earlier noted the solid volumes reported by CCNN in its Q1 19 financials. As a result, we now see increasing volume growth on the horizon with our forecast average capacity utilization of 88% and domestic market share of 5.6% by FY 2023 (FY 18: 3.1%). Additionally, we see increased efficiency on the company’s new plant translating to improvement in margins with average estimate of 48% (previously: 43%). Consequently, we have raised our FVE to N22.87 (previous estimate of N17.31) which translates to a BUY on our rating.