Afreximbank plans IPO on London Stock Exchange
The African Export-Import Bank has
announced its plans to list on the London Stock Exchange by way of an
Initial Public Offering.
The LSE announced on Wednesday that the
Afreximbank said it intended to publish a registration document and
consider proceeding with an IPO of global depositary receipts,
representing Class D ordinary shares of the bank.
It stated that the GDRs were expected to
be admitted to the standard listing segment of the official list of the
FCA and to trading on the main market of the LSE.
The President, Afreximbank, Professor
Benedict Oramah, said, the bank was very much at the epicentre of
Africa’s trade, which was expected to grow rapidly.
He stated that the growth would be
driven by the enactment of Africa Continental Free Trade Agreement that
would create an integrated market of 1.2 billon people, widespread
urbanisation, favourable demographics and rising investments.
He said, “We are in a key position to
leverage our existing relationships with the African Union and its 55
member countries to provide a platform for trade and investment flows
across the continent.
“Our focus on technology and operational
excellence has ensured that we have a robust and growing balance sheet
and can sustain profitability. We are excited by Africa’s trade and
economic prospects, particularly as we implement the bank’s flagship
initiative, the Pan-African payment and settlement system, aimed at
boosting intra-regional trade.”
Oramah stated that Afreximbank was well
placed to capitalise on the opening up of trade across the continent,
adding that with an experienced management team, the bank was confident
of delivering value for shareholders and customers.
The notice on the LSE said should the
bank proceed with the IPO, immediately following admission, the bank
would permit exchangeability between the GDRs traded in London and its
depositary receipts currently listed in the Mauritius, which would
ultimately increase effective free float.
It added that any additional details in
relation to the potential offer, together with any changes to corporate
governance, remuneration arrangements and relationship with shareholders
would be disclosed in an ‘Intention to Float’ announcement and/or the
prospectus, if and when published.
The notice read in part, “The bank has
engaged J.P Morgan Securities Plc and HSBC Bank Plc to act as joint
global co-ordinators and joint bookrunners while Exotix Partners LLP
would act as co-lead manager in the event the IPO held.”
It added that Afreximbank Advisory and Capital Market Department was acting as financial adviser.
Source: Punchng, October 10, 2019