An African trade finance group has confirmed its plans to plough ahead with a listing in London, giving a boost to the capital’s ailing initial public offering (IPO) market.
The African Export-Import Bank, which provides trade finance for large infrastructure projects across the continent, is hoping to raise $250m (£196m) in its float on the London Stock Exchange.
The group, better known as Afreximbank, said the final offer price will be determined following a book-building process, with admission expected to occur in November.
Benedict Oramah, President of the African Export-Import Bank, said today: “I am delighted to confirm our intention to float on the London Stock Exchange.”
He added: “Afreximbank is well placed to capitalise on the opening up of trade across the continent and, with our experienced management team, we are confident we can deliver value for shareholders and customers. We look forward to presenting our growth story to investors.”
Founded in 1993 by a group of African governments and investors, Afreximbank was created to “to facilitate, promote and expand intra- and extra- African trade”. It says it has provided over $69bn of trade financing across 51 countries since its creation.
The possible floatation is a rare bit of good news for London’s IPO market, which has struggled with a sharp drop in new listings amid ongoing political uncertainty in the UK.
There were just 24 IPOs on the LSE by the end of September this year, a 55 per cent drop compared to the same period in 2018, according to research by EY.
The third quarter of 2019 was the quietest quarter in a decade for UK IPOs, with just four listings taking place between July and September.