Ahead of its secondary listing on the floor of Nigerian Stock Exchange (NSE), Airtel Africa Plc said it will leverage on data, voice and mobile money penetration to grow its earnings. Segun Ogunsanya disclosed this to capital market community at the company’s facts before listing in Lagos.
However, the much expected shares listing slated for Friday July 5, 2019, has been postponed. According to NSE, the postponement was necessitated by the need to ensure that the company meets all the post approval pre-requisites for listing.
Addressing questions from stockbrokers and financial journalist, Ogunsanya said, the company will pay out 80 percent of its results to shareholders. The postpone secondary listing of Airtel on the NSE is coming after its London Stock Exchange (LSE) primarily listing, which followed a book building process that saw investors purchase 637,178,979 ordinary shares of 50 Cents at 80 Pence per share.
According to Ogunsanya the listing will be done in the next few days after fulfilling regulatory requirements. Expected to be listed in the dual/cross-border listing on the NSE main board is the entire issued 3,758,151,504 ordinary shares of Airtel Africa Plc.
By this arrangement, shares of Airtel Africa with operations in 14 African countries would be listed at N363 per share, adding a total of N1.364 trillion to the market capitalisation of the Nigerian Stock Exchange.
In this case, a secondary listing is when securities already listed on a primary exchange are subsequently listed on other securities exchanges, with the Issuer not subjected to the full requirements applicable to listing on the other securities exchange(s) at which it seeks a secondary listing.
While a bookbuilding is defined as a price discovery mechanism that is used in the capital market to price securities for public sale for the first time. When shares are being offered for sale in an IPO, it can either be done at a fixed price or at a price range.
If the company is not sure about the exact price at which to market its shares, it can decide a price range instead of an exact figure. The method of offering shares by providing a price range is called a book building method. The price range sets a floor price and the highest price in which investors can bid.
Airtel Africa Plc (Airtel Africa) is the holding company of Airtel Networks Limited (Airtel Nigeria) and thirteen (13) other subsidiaries in Africa – Airtel Congo S.A., Airtel Gabon S.A., Celtel Niger S.A., Airtel Congo RDC S.A. (DRC). Airtel Tanzania Plc, Airtel Networks Zambia Plc, Airtel Networks Kenya Limited, Airtel Tchad S.A., Airtel Madagascar S.A, Airtel Malawi Limited, Airtel Rwanda Limited, Airtel Uganda Limited and Airtel (Seychelles) Limited.