NSE postpones Airtel Africa listing

The Nigerian Stock Exchange (NSE) has postponed the much-anticipated listing of Airtel Africa, leaving investors in limbo as they await further updates on the new listing date. Femi Oladehin, Partner, Investment Banking at Argentil Capital Partners, shed some light on the situation in an interview with CNBC Africa. Oladehin highlighted that the NSE cited unfulfilled listing conditions as the reason for the delay, drawing parallels to previous experiences like the MTN listing which faced backlash. He speculated that the NSE is being cautious to avoid any potential manipulation allegations by ensuring all requirements are met thoroughly. One of the key issues raised was Airtel Africa's failure to meet the minimum shareholder requirements of 300 as of the approval date. Despite conducting a book running exercise earlier in the week, it seems that the company may not have met this criteria at the time of approval. However, Oladehin noted that there has been significant progress in garnering individual shareholders in the past week, potentially resolving this issue. Assurances were made that the delays are expected to be resolved promptly, with the listing possibly taking place on Monday. Despite the setbacks, Oladehin commended the transparency of the process compared to past listings, emphasizing the importance of maintaining market credibility. Reflecting on the overall handling of the listing process, Oladehin remarked that while there have been challenges, it has fared better than previous transactions such as the MTN listing. Airtel Africa opted for a public offering route, involving institutional and qualifying investors, which has added a layer of transparency to the process. The NSE faces pressure to expand and diversify the market, with minimal new listings in recent years. This eagerness to grow the market may have led to certain concessions, but Oladehin stressed the importance of upholding market credibility above all else. Moving forward, he emphasized the lessons learned for the NSE, highlighting the proactive management's efforts to address issues promptly. Ongoing transparency and fine-tuning of processes will be crucial in rebuilding investor confidence and fostering a positive market sentiment. With the recent appointment of a Securities and Exchange Commissioner after five years without one, the market is poised for a potential shift towards a more favorable outlook, signaling optimism for investors and stakeholders alike.