Ksh 300b raised by African markets last year

Written By: O'Brien Kimani
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African capital markets raised 300 billion shillings last year with a total of 28 listings through initial public offers.

East African markets however missed out, with Johannesburg and Nigerian stock exchanges dominating the listings.

The 2017 African Capital Markets Watch report by accounting and financial firm PriceWaterHouse Coopers shows the listings were largely driven by the financial services sector for further offers while the consumer services sector topped the IPOs table.

It has been a dry spell at the Nairobi Securities Exchange (NSE) as companies avoided listing at the market due to suppressed activities at the largest market in the region.

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The market has only witnessed two IPOs in the last five years. However other peer markets recorded improved activities in registering the most growth in 2017.

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The report says the growth was mainly driven by recovery in commodity prices in Cote D’Ivoire and Nigeria, which emerged from five successive quarters of GDP declines, and resilience in the face of economic and political uncertainty in South Africa.

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The listing was largely driven by the financial services sector for further offers while the consumer services sector topped the IPOs table.

The markets further raised more than one trillion shillings in further offers in 2017.

The improvement in 2017 was largely driven by activity in South Africa, notably in the second half of the year, with other significant contributors including Egypt and Tunisia, and renewed listing activity in Namibia, which saw two IPOs in 2017.

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Steinhoff Africa Retail Ltd was the top IPO in the year raising a total of 130 billion shillings on the Johannesburg market; it was followed by African Rainbow Capital Investments which raised 34 billion shillings.

Vodacom Tanzania was the only listing that featured in the top ten list in 2017 was a total of 22 billion shillings.

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