AfCFTA africa Banking Capital market IPO Securities

Afreximbank plans US$3B IPO on London Stock Exchange

The African Export-Import Bank has announced its plans to list on the London Stock Exchange by way of a $3 billion 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 (GDRs), 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 1.3 billion 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 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 book-runners while Exotix Partners LLP would act as co-lead manager in the event the IPO held.”

It added that the Afreximbank Advisory and Capital Market Department was acting as a financial adviser.

Afreximbank was founded in 1993 by a consortium of African governments and says it has provided over $69 billion in trade financing since its inception. Its biggest shareholders are the Nigerian and Egyptian governments.

Last year profits came in at $275.9 million, up from $220.5 million the year before.

Written by Mark-Anthony Johnson, CEO at JIC Holdings

JIC Holdings is an innovative private holding company established in 2009 by its CEO, Mark-Anthony Johnson, to seize developing opportunities in emerging and frontier markets and has since grown into an international asset and investment management company with offices, associates and investments around the globe.

Source: The Exchange

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