Shares of Airtel Africa Plc slumped by 10 percent, the maximum daily allowable loss on the Nigerian Stock Exchange (NSE), in early trading at the local bourse Wednesday.
The stock of the telecommunications firm, which opened at N399.30, fell to N359.40 per share as at 1:30 PM Nigerian time, shaving its market value to N1.35 trillion.
Airtel Africa embarked on a cross-border listing of its shares on the NSE and the London Stock Exchange (LSE). The primary listing was performed at the London bourse on Friday, June 28 to record a disappointing debut trading with a 15 percent decline, while the NSE served as the secondary market for the stock.
The company listed 3.75 billion ordinary shares at the Lagos bourse Tuesday at N363. But within 12 minutes to the close of business, the company’s stock gained 10 percent in its debut trading at the NSE.
Paul Uzum, a Lagos-based stockbroker, had said the gain was not reflecting market sentiment, noting that the market would correct the price of the telco’s stock in the coming trading sessions and narrow the chances for price arbitrage.