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Airtel Africa has announced it preparedness to list its shares on the floor of the Malawi Stock Exchange.

The telecommunications company said it would embark on an Initial Public Offering (IPO) of its Malawian subsidiary on the main market of the Malawi Stock Exchange.

The network provider, which has subsidiaries in 14 African countries, disclosed that its shares would be available for the public to purchase once necessary regulatory approvals had been received. This was made known in a statement published on the Nigerian Stock Exchange (NSE).

Though the company is yet to obtain approval, it said the offering of its shares for sale would also be determined by the condition of the market.

In the statement obtained by Nairametrics, Airtel Africa said its indicative price range for the offer of its local business in Malawi and the “exact number of Shares to be sold in the Offer would be determined in due course.”

Regulation forces Airtel Africa to initiate shares listing in Malawi 

Why is Airtel Africa listing in Malawi? It is listing its shares in Malawi in order to comply with the laws of the country. Section 35 of the Communications Act of 2016, regulation 26 (2) of the communication (Telecommunications and Broadcasting Licensing), Regulations of 2016 and Clause 42.2 of the Subsidiary’s operating license requires the company to have at least 20% local Malawian shareholding.

Though the date for its listing wasn’t disclosed, the company disclosed that its subsidiary had employed the services of Standard Bank Plc in Malawi to act as book runner and as Lead Transaction Advisor to the company.

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[READ MORE: Airtel to acquire additional spectrum for $70 million)

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While Airtel Malawi is one of Airtel’s smaller markets, Airtel Nigeria is its key revenue driver in Africa. The company accounts for 33 million subscribers in Nigeria, making it the second-largest network provider in the country behind MTN Nigeria. It listed in Nigeria in July 2019.

By the number of active subscribers in Africa, Airtel Africa is rated as the second-largest mobile operator in Africa behind MTN. The subsidiaries are in Nigeria, Kenya, Uganda, Rwanda, Tanzania, Malawi Zambia, Niger, Gabon, Chad, Congo Brazzaville, the Democratic Republic of the Congo, Madagascar and Seychelles.

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