Shares of Airtel Africa B.V. has now shed a minimum of 10% just less than three days after it finally listed on the Nigerian Stock Exchange.
Starting out with N399.30 on its opening debut, the stock now trades at N349.40, a major decline for a newly listed company. A similar scenario played out on the same day Airtel Africa was listed on the London Stock Exchange.
The trend is a stark difference compared to MTN which rose by close to 60% in the first week of trading.
There are various reasons for this crash in price. There are possibilities of a higher influx of sell orders by its existing shareholders. Also, the fact that Airtel Africa has been in a loss-making position for some years now means many of its shareholders have not been getting dividends for some considerable period of time.
The listing was a Cross Border Secondary Listing of 3,758,151,504 ordinary shares of Airtel Africa Plc July 9, 2019. The shares were listed at an offer price of N363 per ordinary share on the Main Board of The Exchange and at 80 pence per ordinary share on the main market of the London Stock Exchange, the primary listing exchange.
The listing of the company’s shares has added N1.36 trillion to the market capitalization of The Exchange, further deepening the Nigerian capital market. The listing was also a positive one for the NSE as it will also increase the visibility of Airtel Africa to investors on the continent and across the globe.
The listing is coming less than two months after MTN Nigeria Communications Plc listed its shares on the NSE to become the second most capitalized stock on the Exchange.