Airtel Money plans one of London's largest IPOs in years (Sept 23)

(Corrects currency in last paragraph to US dollars from pounds, removes currency conversion. The error also appeared in previous versions of the story.)

By Shashwat Awasthi and Paul Sandle

Sept 23 (Reuters) - Airtel Money, the mobile money arm of Airtel Africa, will file for what could be one of London's biggest initial public offerings in recent years, marking a potential turning point for the market after a prolonged slowdown in new listings.

The listing could provide a much-needed boost for London's stock market, which has been shrinking over the past decade as companies have moved away for higher valuations, prompting Britain's financial regulator to simplify listing rules to make it more attractive.

A source close to the matter said Airtel Money could raise about $800 million from the offering, which would give it a market capitalisation of between $8 billion and $9 billion.

Details including the indicative price range and number of shares to be offered are expected to be disclosed in early October, with final pricing in mid-October, the company said on Wednesday.

SHOT IN THE ARM FOR LONDON MARKET

An $800 million offering would make it London's largest IPO since 2021, according to Mergermarket.

"London has not had a $1 billion-plus IPO since 2021, so the deal would undoubtedly be a positive for the exchange," said Samuel Kerr at M&A analytics platform Mergermarket.

The IPO will be completed through a secondary offering of existing shares, after which Airtel Money is expected to have a free float of at least 10%.

Airtel Money had originally targeted a listing in the first half of 2026 but postponed it to the second half, citing unfavourable market conditions tied to the U.S.-Israeli war on Iran.

"I think we've got relatively good market conditions. Yes, there's some volatility right now, but if you look at a lot of the indexes, they are performing (well)," Airtel Money Chief Executive Ian Ferrao told Reuters.

'WE BELIEVE IN LONDON'

“When it comes down to it, London has deep capital available ... Our brand is well known, and that's probably made it easier for us to walk into London and to talk to all of the investors," Ferrao told Reuters.

"We believe in London and I think it's going to be a good home for us."

Airtel Money, which operates in Sub-Saharan Africa, has its legal headquarters in the Netherlands and strategic offices in Dubai.

London-listed Airtel Africa currently owns about 78% of Airtel Money while minority stakes are held by TPG, Mastercard, the Qatar Investment Authority and Chimetech Holding.

Airtel Africa will remain a long-term investor after the IPO, Airtel Money said.

Revenue in the quarter to June 30 jumped 38% to $399 million, with about 53 million monthly active users, it said.

(Reporting by Shashwat Awasthi, Yadarisa Shabong and Nithyashree R B in Bengaluru, Paul Sandle in LondonEditing by Rashmi Aich, Anousha Sakoui and David Goodman)