London Stock Exchange Group opens NSE’S eyes to possible IPO target firms

…identifies 97 Nigerian companies crucial for Africa’s future growth

Most of the companies which the Nigerian Stock Exchange (NSE) is hunting to meet its new listings target are very much within.

This comes as no fewer than 97 Nigerian firms are identified by the London Stock Exchange Group (LSEG) as crucial in powering the next stage of Africa’s growth.

These Nigerian companies were named in the report ‘Companies to Inspire Africa 2019’ which featured 360 companies from 32 different countries across the continent.

These companies are said to be boasting an incredibly impressive average compound annual growth rate of 46 percent, up from 16 percent last year.

Most of the identified companies should be attractive for listing on the NSE if well engaged by the bourse.

The LSEG said the firms it listed in 2018 ‘Companies to Inspire Africa’ report have already realised significant progress and achievements in the last 12 months in a variety of ways, including pursuing Initial Public Offerings (IPOS) and issuing bonds to grow, while some have also undertaken cross-border expansion, both within the African continent and globally.

“The growth rates and sector diversity of the firms featured highlight their potential to transform the African and wider economy and become the big global job creators of tomorrow,” said David Schwimmer, CEO, London Stock Exchange Group.

“While capital markets have long been associated with larger compa- nies, 23 years ago we did something different, launching a capital market specifically for high-growth potential companies, Alternative Investment Market (AIM). It is now the most successful global growth company market in the world and has raised over £110billion for nearly 4,000 companies in little over two decades,” Schwimmer said.

The list features a diverse range of industry sectors, painting an encouraging picture of the future of the African economy. Consumer services, industry and agriculture are the three biggest sectors, between them making up over 50 percent of the companies featured. Technology & telecoms and financial services together represent over 25 percent of the firms, while healthcare & education and renewable energy also feature strongly.

The identified Nigerian companies said to be crucial for the future of the African economy include 3 Wise Pixels Ltd, AACE Food Processing and Distribution Ltd, ACIOE