Home Business Airtel Africa to add N1.36trn shares on NSE today

Airtel Africa to add N1.36trn shares on NSE today

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The Nigerian Stock Exchange (NSE), on Thursday, said all is set for today’s dual/cross-border listing of the entire issued 3,758,151,504 ordinary shares of Airtel Africa Plc on its main board.

By that arrangement, shares of Airtel Africa with operations in 14 African countries would be listed at N363 per share, adding a total of N1.36 trillion to the market capitalisation of the Exchange.

The secondary listing of Airtel on the NSE today is coming after its London Stock Exchange (LSE) primarily listing on Wednesday, which followed a book building process that saw investors purchase 637,178,979 ordinary shares of 50 cents at 80 Pence per share.

A secondary listing is when securities already listed on a primary exchange are subsequently listed on other securities exchanges, with the Issuer not subjected to the full requirements applicable to listing on the other securities exchange(s) at which it seeks a secondary listing.

A bookbuilding is defined as “a price discovery mechanism that is used in the capital market to price securities for public sale for the first time. When shares are being offered for sale in an IPO, it can either be done at a fixed price or at a price range.

“If the company is not sure about the exact price at which to market its shares, it can decide a price range instead of an exact figure.

The method of offering shares by providing a price range is called a book building method. The price range sets a floor price and the highest price in which investors can bid.”.

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