Big oil-producing countries have faced a double-hit in recent months: the sudden drop in prices of oil and the economic impact of the global pandemic. In the case of Angola, which entered both crises with an already weakened economy, how are its prospects looking? The Africa Report speaks to Sergio Pugliese, the Executive President for the African Energy Chamber (AEC), to find out.
Airtel Africa lists in Nigeria and turns to Africa for growth
Just after its late June initial public offering (IPO) on the London Stock Exchange, Airtel Africa today was also officially listed on the Nigerian Stock Exchange (NSE).
The teleco Airtel is looking to Africa to spur its growth, with its Indian operations grappling with debts at home and the drive to develop 5G networks there.
The secondary listing of Airtel Africa, the second-largest operator on the continent after MTN, was initially billed for last week but was postponed.
Airtel has been worried about the market’s appetite for telecos in emerging markets. Last month, Airtel Africa’s shares plunged on the London exchange by about 16%. It had raised about $750m during that listing.
When complete, the value of the Nigerian free float listing will be N1.354trn ($3.8bn) – approximately half the size of that of its competitor, MTN Nigeria. This value makes it one of the top stocks on the NSE in terms of capitalisation – joining the league of Dangote Cement and MTN Nigeria – and bigger than the London one.
Airtel had announced that the listing was of 39,227,968 ordinary shares at N363 per share. They ended the day with a tidy rise, reaching N399.3. It was a boost for the Nigerian market, as worries mount about the country’s political go-slows and economic direction.
Airtel in Africa
Airtel Africa is the parent company of Airtel in 14 African countries, including Nigeria. Nigeria is Airtel’s biggest African market, and it held 26.3% of market share in May of this year, according to the latest data from the Nigerian Communications Commission. That puts it just behind Globacom (26.8%) and well behind South Africa’s MTN (37.4%).
Many African governments have been pushing telcos to list their shares on local bourses as a commitment to developing the local financial sectors. As a top player in Nigeria, Airtel has so far avoided the clashes with the authorities of its peer, MTN.
According to a statement released by the NSE, a special waiver was granted to Airtel after the telecom operator could not gather the required minimum of 300 shareholders, an important criterion for a company looking to list on the platform.
Why this is important: With multinationals like Airtel and MTN swelling the ranks of the NSE, more foreign entities could decide to follow suit and lead to a more robust stock market.