Leading network operator Airtel Africa has revealed plans to list its local subsidiary in Malawi (Airtel Malawi Plc) on the country’s bourse. The planned initial public offering (IPO) follows the dual listing of the telecommunications group on the Nigerian and London stock exchanges earlier this year. The telecoms company intends to apply for the admission of its ordinary shares on the main market of the Malawi Stock Exchange (MSE), it said in a corporate disclosure issued on the Nigerian Stock Exchange (NSE) on Wednesday. Without stating the price range or the number shares to be sold in the offer, Airtel disclosed that its shares would be available for the public to purchase once necessary regulatory approvals had been received. The sale is also subject to market conditions. The decision to list its shares in Malawi is in compliance with the laws of the southern African country. A section of the Communications Act of 2016 on licensing for the operation of a telecommunications and broadcasting subsidiary, requires that the company have at least 20 percent local Malawian shareholding. Many countries across Africa have similar legislation that mandates local ownership in foreign companies, for the purpose of promoting local investment and ownership in key sectors such as telecoms.
SOURCE: VENTURES AFRICA