Many African companies have achieved great success within the continent to the degree that it made sense to list on the London Stock Exchange (LSE) alongside their local Stock Exchange listing, in order to attract further investment in the UK.
Numerous African businesses are able to take advantage of dual listing on the their local stock exchanges and the LSE, which is what a number of established companies in Sub-Saharan Africa do.
These firms are able to find comparative advantage with access to two liquidity pools, with an African investor base that understands the African nature of the business, and a secondary investor base in London, that understands the company’s international aspirations.
We take a look at 10 companies from Sub-Saharan Africa which are listed on the LSE.
The Nigerian bank with links throughout Africa is listed on the UK bourse, allowing for an additional stream of investment capital which assists in the company’s continued growth on the continent. Based on Victoria Island in Lagos, the mammoth bank listed on the London Stock Exchange in March 2013, providing services to individuals and businesses. With over 500 branches and business offices in Nigeria, Ghana, Sierra Leone, Gambia, South Africa, the UK and China, the biggest bank in Nigeria enjoys a shareholder base of around one million people.
The Kenyan company trades on both the Nairobi and London Stock Exchanges, and is involved in farming and food production in the East African country. The agricultural firm enjoys a rich history, having been established in 1906 and listing on the London bourse in February 1953. Kakuzi is owned by parent company Camellia, which is a UK-based firm that currently enjoys a 50.7% shareholding.
The South African media giant head-quartered in Cape Town is a well known entity within many markets, including Africa, Asia and Europe. With key business focused in online, pay television and print media sectors, the company decided to list on the London Stock Exchange in August 2007. Interestingly, Naspers also holds minority investments in two listed, integrated social-network platforms in China (Tencent) and Russia (Mail.ru).
NMBZ Holdings is a Zimbabwean investment holding company that controls NMB Bank Limited, a commercial bank, as well as Stewart Holdings (Private) Limited, an equities holding company. With a dual listing on the Zimbabwean Stock Exchange and the London Stock Exchange, the NMBZ Holdings has come a long way since it was created in 1992 by a selection of highly respected Zimbabwean businessmen who had previously worked for institutions such as the World Bank and the International Finance Corporation. The company began trading on the London Stock Exchange in April 1997.
With over 19,000 employees based in 24 countries, South African company Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions. The company involved in the equipment and automotive industry listed on the London Stock Exchange in 1969. Barloworld represents numerous premium brands, including BMW, Caterpillar, Toyota, GM, Ford and Mercedes-Benz. Around 70% of their 19,000 employees are based in South Africa.
Having listed on the London Stock Exchange in June 2011, the Zambian company is also listed on the Lusaka Stock Exchange, giving it a local pool of investors alongside an international investment base. Zambeef is Zambia’s largest agri-business, as around 5,800 staff work to produce, process, distribute and sell beef, chicken, pork, dairy products, eggs, and other food products with annual revenues of about $275 million.
SABMiller is a brewing giant which is currently in talks about a potential takeover by rival Anheuser-Busch InBev (ABI.BR). The company’s popular beer brands include Castle, Peroni and Grolsch. SABMiller is listed in Johannesburg and London on their respective stock exchanges. Anheuser-Busch, the world’s largest brewer, approached the South African company in September about a likely takeover that would form a huge business which would be responsible for producing a third of the world’s beer.
This Lusaka Stock Exchange listed company has a long history of managing wealth through investments in Zambia, with a special focus on the copper mining sector. In addition to a listing in the local bourse, ZCCM Investments Holdings is also listed on the Paris Euronext and London Stock Exchanges. In fact, the company has been listed in London since 1970, and recently the ZCCM has been encouraging the people of Zambia to acquire shares in an effort to increase participation of Zambians in economic development.
The Nigerian oil and gas company enjoys a dual listing in London and the Nigerian financial hub, Lagos. A fairly new addition to the London Stock Exchange, having listed in April last year, the company was able to raise an initial public offering (IPO) which valued the business at $1.91 billion. With approximately $500 million raised, it became the biggest European IPO of a petroleum exploration and production business since the global financial crisis took hold of the world’s markets.
Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Mondi Group works across the packaging and paper value chain, and service industries such as the automotive, building and construction, chemicals, food and beverage, home and personal care, medical and pharmaceutical, packaging and paper converting, pet care, and office and professional printing.
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