London Stock Exchange looking to entice African companies
The London Stock Exchange (LSE) is attempting to increase the number of listings of African companies in the UK, according to a Financial Times report.The London Stock Exchange (LSE) is attempting to increase the number of listings of African companies in the UK, according to a Financial Times report.
The newspaper says the LSE is working on partnerships with exchanges in Morocco, Egypt, Nigeria and Kenya for dual listings, following strong interest from institutional investors.
"There is a big push for Africa, particularly creating a partnership with local exchanges," Ibukun Adebayo, co-head of emerging markets at the LSE, told the publication.
Mr Adebayo said the LSE was courting “indigenous companies” in the consumer and financial sectors, but admitted that some UK-based institutional investors remain concerned.
"Governance issues are still out there," he admitted, adding that the second obstacle is the credit market, which allows African companies to raise capital through bonds and syndicated loans, thus bypassing the equity market.
Over the past five years, 55 African companies have listed in London, compared with 33 in the previous five years.
Research by global law firm Baker & McKenzie shows there were 10 Africa-related initial public offerings (IPOs) on the LSE in 2013, more than double
the previous year.