African IPOs could raise highest amount since 2010
Companies on the continent are likely to raise $3.1 billion.African companies could launch more than a dozen initial public offerings (IPOs) this year, according to a new report from international law firm Baker & McKenzie.
It said that if transactions in the pipeline are concluded, they are likely to raise $3.1 billion (€2.85 billion) - the highest amount since 2010 and twice the amount that was raised last year ($1.5 billion).
"Fifteen IPOs are already in the pipeline, with one, Nigeria's Interswitch, which processes payments for banks and operates in five African countries, that could be Africa's first billion-dollar IPO," the firm said in a statement.
Other IPOs expected include Botswana Telecoms and real estate fund Tadvest's dual listing in Mauritius and Namibia.
"The wider continent still faces challenges and there is little local institutional investment or retail demand other than in the biggest economies. This means larger companies have to dual-list in a global financial center like London, as well as their home market," said Edward Bibko, head of the firm's capital markets practice for Europe, Middle East and Africa.