The African Export-Import Bank (Afreximbank) has declared its intention to list on the London Stock Exchange (LSE).
In a statement made available to the investing public, it was stated that the trade finance bank for Africa would list by way of Initial Public Offering (IPO).
Announcing the bank’s plan to list, Professor Benedict Oramah, the President of Afreximbank stated, “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.”
Why Afreximbank is listing: According to the financial service firm, the public listing will enable it to capitalise on the opening up of trade across the African continent.
How Afreximbank is approaching this: The bank expressed its confidence of deploying an experienced management team to deliver value for shareholders and customers.
What you should know: According to the LSE, the bank intends to publish a registration document and is considering proceeding with an IPO of Global Depositary Receipts (GDRs), representing Class D ordinary shares of the bank. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA as well as to trading on the main market LSE.
Details of the IPO: Afreximbank would permit exchangeability between the GDRs traded in London and its depositary receipts currently listed in Mauritius, which would ultimately increase effective free float.
The notice on the LSE disclosed 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.
J.P Morgan Securities Plc and HSBC Bank Plc have been engaged by the bank 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. The Afreximbank Advisory and Capital Market Department will be acting as financial adviser.