Airtel Africa Shares (LON: AAF) Post All-Time Highs As Price Discovery Continues

Airtel Africa shares (LON: AAF) have surged to unprecedented heights today, hitting 187.25p as a period of price discovery continues.

The telecommunications giant, a key player in the African market, has been posting impressive gains in response to the company's proactive measures to enhance shareholder value and capitalise on the growing demand for telecommunications and mobile money services across the continent.

The company's market capitalization has ballooned to £6.86 billion, marking a 59% increase since the start of this year. Since its initial listing in 2019, Airtel Africa has demonstrated a compound annual growth rate of 16.81%, transforming from a £2.55 billion entity to a dominant force in the African telecom landscape.

One of the key drivers behind Airtel Africa's recent success is its ongoing share buyback program. Initiated in March 2024, the program aims to repurchase $100 million worth of shares, with the first tranche successfully completed in April 2025. The second tranche, commenced in May 2025, targets the repurchase of up to $55 million worth of shares by November 2025. As of June 2025, the company had already repurchased 1.9 million shares. This strategic move is designed to reduce the company's capital base and, in turn, enhance shareholder value by increasing earnings per share and providing a return of capital to investors.

Beyond the share buyback, Airtel Africa's strong financial performance has played a crucial role in bolstering investor sentiment. In the third quarter of fiscal year 2025, the company reported a 4% increase in revenues, reaching $1.27 billion, despite navigating significant foreign exchange headwinds. Adjusted EBITDA for the quarter exceeded expectations at $594 million, representing a 3.5% increase.

Looking ahead, Airtel Africa's strategic plans for its mobile money services unit, Airtel Money, have generated considerable excitement among investors. The company announced plans in May to list Airtel Money in the first half of 2026.

This strategic move aims to unlock the inherent value of Airtel Money, enhance its visibility, and attract new investments. By granting Airtel Money greater autonomy, the company hopes to accelerate its growth trajectory and solidify its position as a leading provider of mobile financial services.

Airtel Africa's positive impact extends beyond its own financial performance. Back in late May, the company's stock played a pivotal role in driving the Nigerian Exchange Limited (NGX) All Share Index past the 111,000 points mark, contributing to a market rally of over N1 trillion.

All time highs, supported by analysts who hold a consensus price target of 197.68p, continue to indicate further upside may be to come. Price discovery can be a volatile period, with previous levels to watch non existent. Major psychological levels could be ones to watch.