Africa Equity

African equity capital markets deals could bolster emerging market issuance figures this year and provide a post-Brexit boost for London where some firms are tipped to dual-list.

Old Mutual has launched a sale of shares in Nedbank Group Ltd, one of South Africa’s largest banks, on behalf of some of its investors who could not receive them as part of the bank’s unbundling from the Old Mutual Group, which was announced last month.

Hassan Allam, the Egyptian construction firm and utilities firm, intends to list shares on both the local Egyptian Exchange and in London through the sale of global depository receipts.

The flotation of Cipla Quality Chemical Industries (CiplaQCIL) on the Ugandan stock exchange could persuade fellow African issuers to follow suit.

Shares in Investec, the Anglo-South African banking group, rose 8.7% on Friday after it announced that it had decided to spin off and list its asset management unit, following a strategic review.

Potential IPO issuers from across emerging markets are waiting for investor sentiment to calm so that they can sell new deals, but many fear that there is little chance of a renaissance for EM this year.

Absa Bank and Rand Merchant Bank are selling a 2.9% stake in Shoprite, the South African food retailer, as part of a derivative transaction with Christo Wiese, chairman of Shoprite and former chairman of Steinhoff International.

Shares in Quilter, the UK asset management arm of Old Mutual, performed well in the aftermarket on Monday after its £239m London IPO.

Shares in Vivo Energy, the African fuel distributor, rose more than 3% on its first day of trading on the London Stock Exchange on Friday, after its £558m IPO attracted substantial demand.

The IPO of Consol, the South African glass bottle maker, has been pulled on the last day of bookbuild. The seller blamed difficult markets and said it had not been able to achieve its “valuation objectives”.

Anglo American Platinum, the biggest producer of platinum in the world, has sold a a 6.5% stake in Royal Bafokeng Platinum to finance its commitment to a joint mining venture in South Africa.

Leads set price ranges in two African IPOs this week, which are coming to market against a backdrop of rising investor interest in Africa.