Airtel Africa Shares Take A Plunge After Lagos Listing
The telecoms firm listed in Lagos on Tuesday in an offering that immediately made it the third-largest company on Nigeria's exchange by market value following its main rival MTN Nigeria and Dangote Cement.
India's Bharti Airtel offered shares in its African unit through an IPO two weeks ago with a flotation in London and now a secondary listing in Nigeria, its largest market in Africa.
The listing follows rival, MTN SA's $6.5bn listing in May that made it the second-largest stock on the NSE by market value.
Meristem analysts said that MTN Nigeria had been trading over-the-counter prior to its Lagos listing but added that a tax dispute with the Federal Government might have affected MTN's valuation.
MTN said that it would sell more shares after it resolves the tax issue.
Nigerian equities plunged to a seven-week low on Tuesday just hours before the Airtel listing which helped the stock market recoup losses. The main index, on the other hand, continued its downward trend on Wednesday and fell 0.86% by 10.46 GMT.
Credit: This article originated from www.businesslive.co.za