NSE to list Airtel Africa shares on Tuesday

Tuesday marks a significant day for the Nigerian Stock Exchange (NSE) as Airtel Africa shares are set to be listed on the local bourse. The long-awaited event was initially scheduled for last Friday but was postponed. The listing is expected to bring a new wave of opportunities and challenges to the market. Research Analyst at ARM Securities, Oluwasegun Akinwale, shed some light on the investment case for Airtel Africa and the telecommunications sector as a whole. Akinwale highlighted the positives and challenges associated with investing in Airtel Africa when compared to its competitor, MTN. While Airtel Africa has shown growth in certain regions and sectors, there are concerns about its overall performance and valuation. Akinwale pointed out that Airtel Africa may face obstacles in matching the scale and dominance of MTN in the Nigerian market. However, he also acknowledged the potential for growth in the FinTech sector, particularly with the expansion of mobile money services. The Central Bank of Nigeria's push for financial inclusion is seen as a positive driver for the industry. Airtel Africa's focus on data services and mobile money could be key factors in attracting investors looking for exposure to the telecommunications and FinTech sectors. Despite the challenges, Akinwale emphasized the importance of considering the market dynamics and competitive landscape when making investment decisions. He maintained a bullish outlook on MTN, citing its strong position in the market and potential for future growth compared to Airtel Africa.