London Stock Exchange Seeks Listings From Africa

(Bloomberg) -- It’s not often that the London Stock Exchange comes to Africa looking for listings. Traditionally companies based on the continent have to make a strong case to have their stock traded on one the world’s biggest bourses.

But this week, officials are on roadshow in a bid to boost the LSE’s 115 African listings. The exchange is banking on partnerships with African exchanges, including those in Nigeria and Kenya, for dual listings, according to Director of Emerging Markets and International Markets Ibukun Adebayo.

They will visit Nairobi and Luanda, the capitals of Kenya and Angola respectively, after a similar visit to South Africa two months ago. They also plan future stops in Abidjan, Cairo, Casablanca, Adebayo said. A final roadshow in New York is planned to showcase the companies to African investors as part of a United Nations initiative, he said.

“If a company has an international strategic growth plan, then the LSE is a perfect vehicle for the company to come and list,” Adebayo said Tuesday in an interview in Nairobi. “If the company is purely domestic and it needs to raise money in the domestic market and increase the number of investors available to it, then the LSE can help work with local partners.”

LSE doesn’t expect Brexit to have a significant effect on the operations of the bourse, Adebayo said. On average, about 40% of the investors in companies listed on the LSE are from the U.K., 30% from the U.S. and 9% are European, he said.

Many African companies are in the budding stage, focusing on growth and lack the scrutiny that comes with being a publicly traded entity, Nairobi Securities Exchange Chief Executive Officer Geoffrey Odundo said during the roadshow.

“Every entrepreneur’s dream is to go public,” Odundo said. “We are yet to get to that realization in Africa.”

Companies that have announced plans to list on the LSE include the National Oil Corp. of Kenya and Econet Wireless Zimbabwe Ltd.

Here are some firms included in the LSE’s listing of Companies to Inspire Africa, which the exchange describes as the continent’s “most inspirational and dynamic private, high-growth companies”:

• South Africa: Ad Dynamo International, Coega Dairy, Compuscan
• Nigeria: Afriland Properties, Alpha Mead Group, ARM Life
• Kenya: Acorn Group, BitPesa, Cellulant Kenya, Chandaria Industries, D.light
• Ivory Coast: Azalai Hotel Abidjan, Cipharm SA, Clinique Procréa, Agriex Côte d’Ivoire
• Angola : Aldeia Nova, Angola Energy Greentech, Kora Angola, WEZA
• Egypt: Cairo Three A, Carbon Holdings, Eagle Chemical Group, Sambo Metals
• Morocco: 10 Rajeb, Bricoma, Damandis Maroc, Ama Detergent, Medafrica Systems

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editors responsible for this story: David Malingha at dmalingha@bloomberg.net, Helen Nyambura, John Viljoen

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