The Nigerian Stock Exchange ( NSE) Friday postponed the Cross Border Secondary Listing of 3,758,151,504 ordinary shares of Airtel Africa Plc.
According to a statement the postponement was necessitated by the need to ensure that the Company meets all the post NSE approval pre-requisites for listing on the NSE. However, the Facts Before the Listing held as planned
Speaking at the event the NSE CEO Oscar Onyema said that the doual listing of Airtel Africa Plc was not the first of such as other Nigerian company have execurted such in the past,saying the only difference this time around is that London is the primary Exchange while NSE is the secondary exchange.
He said that Airtel ultimately be listed in accordance with rules and regulation of the Exchange,maintaining that what the NSE want to ensure that the whole effort meets global standards in the overal interest of the nation.
The CEO of Airtel Nigeria in his own reaction stressed that the advantage of Airtel Africa is that its in all of 14 countries across Africa and its debt profile of $4billion is not out of place as its made up largely of long term debts that could be cleared largely within the next two years when it should had been winded down to about $2.8 billion.
He disclosed that the companies dividend policy is 80% of its profit yearly,saying that Airtel would be paying its half year dividend by September if all goes well as planned.
It would be recalled that At a pre-listing media interactive session organized by the Nigeria stock exchange, the Head, Listings Regulation Mr. Godstime Iwenekhai said the listing will the cross-border secondary following an Initial Public Offer, IPO by book building.
The Head, Listing Regulations also stated that Airtel Africa Plc met the regulatory requirement on Free Float, with 25% across the London Stock exchange and the Nigeria stock exchange.
He noted that Airtel Africa Plc will issue 39million shares to local investors at the price of N363.
Airtel Africa Plc on July 3, 2019 listed on the London Stock Exchange as the primary market of listing.
The listing on the NSE will lead to a total market capitalization of about N1.36trn.
At the moment Airtel Africa Plc has 87 shareholders, to which the council of the Nigeria stock exchange has given a waiver for the Telco firm to meet the requirement of 300.
The IPO according to Iwenekhai is limited to Institutional Investors and High Net Individuals, while the proceeds will be used to reduce its debt obligations and also invest in its operations across the Africa operations.
Speaking further Mr Olumide Bolumole the Divisional Head, Listing Business for the NSE believed the Airtel Africa Plc will deepen the Nigerian capital market.
Responding to questions on addressing the issues of price manipulations and any form of infraction, Mr Jude Chiemeka , Divisional Head Trading Business for NSE assured capital market correspondents that the exchange has a robust trading system, with a “SMART” surveillance and a methodology to track and detect any form of irregularity.
Airtel is now the second major telecommunications operator to list on the Nigeria stock exchange, since the full liberalization of the sector in 2001.
Parties to the Airtel Africa Plc are Barclays Stockbrokers Nigeria Limited, Quantum Zenith Securities & Investments Limited and Chapel Hill Denham Securities Limited.
Receiving agents are Greenwich Securities Limited and Chapel Hill Denham Advisory Limited.