Telecoms group Airtel aims to raise about US$37.5-million via an initial public offering (IPO) of shares of its Malawi operations.

Shares of Airtel Malawi will be listed on the local bourse at an introductory price of 12.69 kwacha ($ 0.021) per share.

A total of 1.65 billion shares are available for offer, representing 15% of the issued share capital. An additional 550 million shares, representing 5% of the issued share capital, will also be made available subject to accommodate over-allotment options.

The Group issued a statement which reads in part: "Airtel Africa, further to its announcement of 11 December 2019 of its intention to float its local business Airtel Malawi, on the Malawi Stock Exchange, has announced the price for the initial public offering (IPO)."

Airtel Malawi's Managing Director Charles Kamoto said the shares became available to the public following the decision of the company's majority shareholders, Bharti Airtel, to let go of their equity.

"The offer will remain open until January 31 2020 and will be followed by the announcement of the results of the offer to the public on February 14 2020. Thereafter, an official listing on the local bourse will happen on February 24," said Kamoto.

Airtel Africa revealed that it has entrusted Standard Bank Plc with the process and modalities are in place to meet high demand for shares from investors.

When the IPO is completed, Airtel Malawi is expected to generate gross proceeds of approximately 27.92 billion kwacha (US$37.5-million) and achieve market capitalisation of 139.59 billion kwacha (US$187.4-million).

The listing of Airtel Africa is the latest in a series of steps taken by Bharti Airtel to raise funds to reduce its overall debt. In October 2019, the Supreme Court in India ordered Airtel to pay at least Rs 35,500 crore as statuary dues in January 2020.