CASE STUDY
Helios Towers
CATEGORY
Supply
Capital market tool
Exit Mobilisation
Geography
Africa (South Africa, Democratic Republic of Congo, Ghana, Republic of Congo and Tanzania)
LISTING EXCHANGE
London Stock Exchange (LSE)
SECTOR
Telecommunications
DFI / DONOR INTERVENTION
IFC
TRANSACTION SIZE
GBP 250 million
TRANSACTION YEAR
2019
Structure and Capital Market Tool
The International Finance Corporation (IFC) has been a shareholder in Helios Towers since the company's establishment, investing USD 100 million in 2009 as part of a USD 250 million capital injection meant to expand the company's network. Further investments followed in 2010 and 2015. Helios first applied to list on both the London Stock Exchange (LSE) and the Johannesburg Stock Exchange (JSE) as early as April 2018. The listing was postponed because of concerns around political risk in the DRC and Tanzania, despite Helios saying it had strong investor interest. Helios ultimately completed its IPO on the LSE in October 2019, with Helios Towers joining the FTSE 250 index. The company raised GBP 250 million (USD 317 million) through its IPO, setting its overall market value at GBP 1.15 billion (USD 1.45 billion) and allowing existing shareholders, including IFC, to reduce their stakes. After its IPO, Helios Towers also continued to use public markets for fundraising through subsequent bond issuances and its inclusion in mainstream exchange-traded funds (ETFs).
Background and Market Context
Established in 2009, Helios Towers owns and operates over 15,000 communications towers across Africa and the Middle East, leasing the shared infrastructure to multiple mobile operators. The company pioneered the sale-leaseback model in Africa, acquiring towers from single mobile operators and then providing tower infrastructure services to both the original seller and other operators. This structure allows wireless operators to outsource non-core tower-related activities, freeing up capital and management capacity to focus on delivering higher-quality services more cost-effectively.
In Africa, Helios Towers now operates over 7,000 mobile telecommunications towers spread across South Africa, the Democratic Republic of Congo (DRC), Ghana, the Republic of Congo and Tanzania, leasing them to mobile phone providers such as Vodacom, MTN and Airtel.
Development Impact
In this supply-side example, the Helios Towers IPO allowed existing development finance system actors to reduce their stake in the company, clearly illustrating exit mobilisation. The IPO brought an African telecommunications company to the LSE as a FTSE 250 constituent, broadening the pool of potential investors that could benchmark and allocate to it.