Nigerian Bourse CEO Sees Further Delays in IPOs Amid Virus

LAGOS (Capital Markets in Africa) — The Nigerian Stock Exchange expects more delays in initial public offerings as the coronavirus pandemic weighs on Africa’s second-biggest market, according to the chief executive.

“We don’t think we will see IPOs in the short term, given some of the uncertainties Covid-19 has brought,” CEO Oscar Onyema said at a virtual conference on Wednesday. Companies seeking to raise capital are showing a preference for rights issues and private placements, he said.

The Lagos-based bourse had its last IPO in 2018 from Skyway Aviation Handling Company. Low equity valuations and liquidity deterred companies, with MTN Group Ltd. and Bharti Airtel Ltd.’s Africa unit listing shares last year without a public offering.

There have been three rights issues and private placements this year, Onyema said. The bourse is expecting some corporate bond listings as companies access the market for debt to cushion the impact of the virus.

Source: Bloomberg Business News