Africa-focused firms raise over N1.04trn on London Stock Exchange

  Since 2008, Africa-focused companies listed on London Stock Exchange (LSE) have raised over £4.2 billion (about N1.04trn) in new and additional issues. By implication, the LSE has gradually become the largest international stock exchange for African firms.

For instance, 97 sub-Saharan Africa-focused companies are listed on or admitted to LSE markets, comprising: 23 equity listings on Main Market, 2 GDR listings on Main Market, 70 equity admissions on Alternative Investment Market (AIM), and 2 GDR listings on Professional Securities Market (PSM).

Recently, Zenith Bank plc joined other two Nigerian banks to list on LSE. The bank listed Global Depository Receipts (GDRs) on Main Market of the LSE, giving it access to a wide range of major institutional investors and significantly raising its international profile. The bank’s market capitalisation at listing was $4.24 billion. The GDRs is to trade on International Order Book (IOB), world’s largest and most liquid GDR market.

Zenith Bank admitted 125 million GDRs, which trade on LSE’s International Order Book. Each Zenith Bank GDR represents 50 ordinary shares. Clifford Chance is the bank’s UK counsel and JP Morgan Chase is the Depository Bank.

Zenith Bank is the third Nigerian bank to list GDRs in London following Guaranty Trust Bank and Diamond Bank.

Ibukun Adebayo, head of primary markets, Africa at London Stock Exchange, said: “Zenith Bank’s listing highlights London’s leading role in supporting Nigeria’s burgeoning financial sector. Three major Nigerian banks have listed in London, demonstrating UK and international investors’ appetite for exposure to this fast-growing and increasingly diverse economy