Nigerian Bourse CEO Sees IPO Revival as Economy Improves in 2018

LAGOS (Capital Markets in Africa) – The Nigerian Stock Exchange expects its first initial public offerings for at least two years as companies take advantage of an improving economy and stock market to raise funds, the chief executive of the bourse said.

“A number of companies have indicated interest” in selling shares as sentiment picks up, Oscar Onyema, CEO of the Lagos-based exchange, told reporters Tuesday. He didn’t name any companies or give any further details. Investors see the challenges of lower oil prices, foreign-exchange shortages and an economic slump that kept IPO plans “mute” in 2017 as abating, he said.

The exchange expects conditions in the Nigerian capital market this year to be “encouraging,” according to Onyema. The bourse plans to start a 2018-2021 program designed to make it a “globally competitive” exchange with a diverse range of products and “quality” listings, he said.

The 192-member Nigeria All-Share Index has surged 15 percent this year, the most among 96 major bourses tracked by Bloomberg. The market performance follows the emergence of Africa’s biggest oil producer from its first economic slump in a quarter century last year, improvements in the global oil price, greater stability in the foreign-exchange market and rising foreign reserves, Onyema said.

The Lagos bourse plans to start exchange-traded derivatives this year to deepen the market and intends to review the rules on delisting companies to ensure investors are adequately protected.

Source: Bloomberg Business News