African Export-Import Bank postpones London IPO
The African Export-Import Bank has put its plans to float on hold, delivering a fresh blow to London’s ailing initial public offering (IPO) market.
Despite confirming just days ago that it was pressing ahead with plans to list in London, the African trade finance group has now put its IPO on ice, citing “unfavourable market conditions”.
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The group, better known as Afreximbank, was hoping to raise $250m (£194m).
Afreximbank provides trade finance for large infrastructure projects across the continent.
“The bank today announces that, despite significant interest in the Bank from investors, in light of unfavourable market conditions, it has decided to postpone the proposed initial public offering at this time,” the group said.
Last week the bank’s president, Benedict Oramah, had told investors that the firm was “confident we can deliver value for shareholders and customers”.
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Founded in 1993 by a group of African governments and investors, Afreximbank was created to “to facilitate, promote and expand intra- and extra- African trade”.
It says it has provided over $69bn of trade financing across 51 countries since its creation.
The news is a fresh sign of trouble in London’s IPO market, which has suffered a sharp slowdown in activity over the last year amid apparent caution from investors in the wake of Brexit uncertainty.
Research earlier this month showed that corporate dealmakers are expecting global IPO activity to drop further next year, as a US-China trade war and fears of a global slowdown mount.
IPO proceeds will slide from $152bn to $116bn in 2020, a new report from Baker McKenzie found.