October 29, 2019 / 7:44 AM / 20 days ago

UPDATE 1-African Export-Import Bank puts London listing plan on ice

(Adds background, further detail)

By Abhinav Ramnarayan

LONDON, Oct 29 (Reuters) - The African Export-Import Bank has postponed a proposed London initial public offering, becoming the latest in a string of companies to cancel such plans in recent weeks in a challenging year for stock listings.

The Cairo-based bank, which was looking to raise $250 million from the deal, cited unfavourable market conditions for its decision to cancel.

“Despite significant interest in the bank from investors, in light of unfavourable market conditions, (the bank) has decided to postpone the proposed initial public offering at this time,” it said in a statement.

Kazakhstan’s Kaspi.kz, Germany’s Domicil Real Estate and Logistrial and Italian yacht maker Ferretti have all pulled stock market listings recently, while global volumes for stock market fundraisings dropped to their lowest level in seven years in the first three quarters of 2019.

Uncertainty over Britain’s exit from the European Union has added an extra layer of volatility to the London market in particular.

That said, there have been some concerns in the market over Afreximbank’s expansion push and some of its more controversial commercial decisions, including a $200 million loan to Zimbabwe in 2016 to underpin a domestic currency experiment.

Afreximbank has operations in Abuja, Abidjan, Harare and Kampala, and counts African governments and states and their public institutions among its shareholders.

JP Morgan and HSBC were joint global coordinators and bookrunners while Exotix Partners LLP acted as co-lead manager. (Reporting by Abhinav Ramnarayan, editing by Sinead Cruise)

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