African IPOs to set tone for private equity exits

Afreximbank on Wednesday announced plans to list D-shares on the London Stock Exchange

After Vivo Energy completed in May 2018 the largest Africa-focused IPO to list in London in 13 years, analysts predicted a surge in volumes from the continent. But difficult market conditions and the poor performance of deals from the likes of telecoms and mobile money provider Africa Airtel and New York-listed e-commerce company Jumia have kept volumes muted and investors wary.

Now Afreximbank and Helios Towers Africa (HTA) are looking to provide investors with a more prudent opportunity, and with bankers noting a series of impending private equity exits, the success or failure of these deals will be an important barometer.

“There’s a healthy pipeline coming up but, while there is always demand for great companies, raising money for African companies requires a very focused approach given global challenges,” says Andrew Schultz, head of sales, frontier Africa at Investec in...