Nigerian Stock Exchange postpones Airtel Africa listing
Airtel Africa was scheduled to make a secondary listing of 3,758,151,504 ordinary shares on the Nigerian bourse on July 5.
The Nigerian Stock Exchange (NSE) said the secondary listing of Airtel Africa – a subsidiary of Bharti Airtel – on the Nigerian bourse has been postponed. In a statement released on Friday by the NSE, the listing was postponed to ensure the telecoms company meets all the listing requirements.
The telecom company, Airtel Africa, was scheduled to make a cross-border listing of 3,758,151,504 ordinary shares on the Nigerian bourse on July 5. Bharti Airtel successfully completed its primary listing on the London Stock Exchange (LSE) last week.
“This postponement was necessitated by the need to ensure that the company meets all the post NSE approval pre-requisites for listing on the NSE. However, the facts before the listing event will hold as planned at 11.00 a.m. on Friday, July 5, 2019,” the NSE said.
A secondary listing or cross listing is a type of share listing that a company undertakes on stock exchange other than the primary exchanges on which its security is listed. The requirements for secondary listings are often less stringent than the those for primary listings.
In a circular released on Thursday, the NSE said it granted Airtel Africa a waiver as the company did not meet the minimum requirement of 300 shareholders when its secondary listing was approved. According to sources familiar with the matter, the NSE came under pressure not to be seen to prioritise its interest above investors interest, the Nations newspaper reported.
One of the financial advisors arranging the issue told Reuters that the delay was due to manual allotment process of transferring the shares to new investors, adding that Airtel Africa aims to list on the Nigerian bourse on Monday.
The NSE said it will provide further communication to the market when all the conditions have been met. The NSE, however, allowed Airtel to hold its Facts Before the Listing event, where it made a presentation to investors. The telecom company had set its listing price on the Nigerian bourse at ₦363 per share.
Earlier in May, MTN Nigeria listed on the NSE. With the secondary listing of Airtel Africa, the NSE continues to diversify its portfolio of stocks and provide options to investors.
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