African Export-Import Bank PLC has confirmed its intention to float in London, joining a dwindling pool of IPOs so far this year.
The Cairo-headquartered financial institution, better known as Afreximbank, expects to be admitted to the main market in November and hopes to raise $250mln.
Professor Benedict Oramah, president of the African Export-Import Bank, said he was “delighted” to confirm the company’s intention to list in London.
Oramah added: “Afreximbank is well placed to capitalise on the opening up of trade across the continent and, with our experienced management team, we are confident we can deliver value for shareholders and customers.”
Afreximbank was set up in 1993 by a group of African governments as well as private and institutional investors to finance, promote, and expand the continent’s trade deals.
As of June, the bank had $15.4mln total assets and turned a profit of $138mln in the six months leading up.
The bank is immune from taxes and customs duties in many of the countries that established it.
The final offer price will be determined after a book-building process to be carried out by its global co-ordinators JP Morgan Securities and HSBC, and up to 15% of the offering will be issued with a ‘brownshoe’ option to support the share price if it falls after listing.
The news comes as a boost to the London's financial market, which has fallen behind this year with only 26 listings on its main and AIM markets, compared to 97 companies for example on the popular Hong Kong Stock Exchange.