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Highlights
- IHS Holding is looking to raise US$506 million from an IPO.
- The Company will sell 22.5 million shares at a price between US$21 and US$24 per share.
- The Company is expected to price this week.
IHS Holding is one of the largest owners, operators and developers of shared telecom infrastructure in the world. IHS Towers, a London-based firm, is the biggest independent tower company in Africa that operates more than 30K towers in 5 African countries, South America, and the Middle East.
IHS Holding announced that it had an intention to raise US$506 million from the IPO, and has begun an IPO of 22.5 million shares, out of which 18 million are being offered by IHS Towers and 4.5 million by selling shareholders. IHS is looking for a price between US$21 and US$24 per share in a filing made with the US Securities and Exchange Commission.
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IHS had published a press release on 14 August 2020, informing about the company exploring a registered IPO in the US, after exploring an IPO in 2018. The Company’s Form F-1 was published on 4 October.
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The Group financials showed consistent topline revenue, gross profit growth, positive earnings and strong cash flows for the 6 months ended 30 June 2021. IHS’s portfolio produced US$1.5 billion in revenue and US$943 million in adjusted EBITDA for the 12 months to Q2 of 2021.
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It has plans to get listed on the NYSE under the ticker, IHS. Goldman Sachs, JP Morgan Securities and Citigroup will act as joint lead book-running managers for the offering. The Company is likely to go ahead with its pricing this week.
How will IPO proceeds be used?
IHS intends to use net proceeds to finance organic and inorganic growth as well as for other general corporate functions. The firm also wants to expand its operations through acquisitions in selected markets and direct sales. IHS recently procured 1005 towers in Brazil, and 1022 towers in Kuwait before that. IHS plans to use IPO proceeds to diversify its revenue sources.
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The Company is looking for a valuation of near US$8 billion in the US that could prove to be the biggest listing by an African firm in the US.
Bottom Line
Telecom tower service providers are in great demand and the market for the same is expected to grow significantly in coming years. Subsequently, IHS has an optimistic industry growth in its favour.