Airtel Africa, one of Africa’s largest telecommunications firms, has surpassed Dangote Cement Plc as the most capitalized company on the Nigerian Exchange after its shares surged above the $3-per-share valuation on the local bourse.
Airtel Africa is a leading provider of telecom and mobile money services in 14 countries across East, Central and West Africa.
The leading telecom services provider is a subsidiary of Bharti Airtel, a telecom company founded by Indian billionaire businessman Sunil Bharti Mittal, who is worth $12 billion.
His son, Shravin Mittal, who is also an Airtel Africa director, owns a 3.38-percent stake in the telecom behemoth, totaling 127,147,531 ordinary shares.
The increase in Airtel Africa’s market capitalization above Dangote Cement’s valuation can be attributed to a rise in its share price, as investors reacted to news of its inclusion in the FTSE 100 Index, an index that includes shares of the top 100 companies on the London Stock Exchange.
Mittal, chairman of Bharti Airtel, stated that Airtel Africa’s inclusion in the FTSE Index, which tracks the performance of the most valuable companies on the bourse, is a significant milestone for the company.
“We are delighted that, after many years of hard work by the Airtel team, the Africa operations have had a stellar turnaround. A lot of credit goes to Raghu Mandava, an Airtel veteran who, along with his team, spent five years reshaping the strategy in Africa,” Mittal said.
As of press time on Jan. 29, shares in the leading telecom operator were worth N1,271 ($3.058), up 37 percent from the previous year.
Airtel Africa’s market capitalization is valued at N4.78 trillion ($11.5 billion) at the current price, making it the most capitalized stock on the Nigerian Exchange, ahead of Aliko Dangote’s Dangote Cement, which is valued at N4.44 trillion ($10.7 billion).
Airtel Africa’s share price has increased by more than 33 percent since the beginning of the year, while its market capitalization has increased by more than $2.8 billion.