Shares in Airtel Money fell below their initial public offering (IPO) price in London on Friday, trading at £1.93 against an offer price of £1.96 despite strong demand for the listing.
The listing, which valued the mobile money business at approximately $7 billion, raised $703 million through the sale of 270 million existing shares.
The offering was several times oversubscribed, indicating investor demand for the shares during the IPO process.
Airtel Africa will retain majority ownership of the mobile money business, which operates in 13 African countries, including Kenya, Tanzania and Malawi.
The share price decline came alongside a six per cent fall in Airtel Africa shares amid a broader sell-off in telecommunications stocks.
The wider market pressure followed SpaceX’s acquisition of spectrum in the United States, adding to investor concerns surrounding developments in the telecommunications sector.
The performance of Airtel Money shares after listing will be closely watched as investors assess the company’s growth prospects and the wider outlook for mobile financial services across Africa.
