The African Export-Import Bank blamed “unfavourable market conditions” as it put the brakes on its plans to raise $250m through a London flotation in a blow to the UK stock market, which has been struggling with low levels of new listings.
The pan-continental trade finance provider, also known as Afreximbank, said on Tuesday it would postpone its plans to list its global depositary receipts in London, despite “significant” investor interest but would continue to “monitor the markets to find the appropriate window” to proceed with the listing.
The announcement will be a blow to the London bourse, which has seen lacklustre volumes and delistings lately, with more companies leaving the LSE’s main market this year than joining.
The decision comes just two weeks after Afreximbank said it would push ahead with the listing, which it had planned to use to fund its expanding operations and take advantage of growing trade across Africa.
It had expected to raise $250m through the process, with the option to add a further 15 per cent’. Admission to the LSE had been expected to occur next month.
A person close to the process had previously told the FT that the bank, which is already listed in Mauritius, saw London as a still-compelling destination to raise capital despite the UK’s impending exit from the EU — given that it operated in dollars and conducts its business internationally.
