Kenya, Nigeria markets luring IPOs after rally

African bourses from Ivory Coast to Kenya are forecasting an increase in share sales in 2014 as a rally in stock markets helps end a drought of initial public offerings.

The Abidjan-based Bourse Regionale des Valeurs Mobilieres, which trades securities from eight West African nations, is set for its first new listings since 2010 with two Senegalese companies, Chairman Gabriel Fal told Bloomberg yesterday.

The Stock of Exchange of Mauritius may see 15 offerings in 2014, while the Nairobi Securities Exchange is predicting five, the heads of the bourses said in separate interviews.

“We have been through a very severe crisis since 2008, especially in the exchange industry,” Fal said. “It’s important that we get new companies, new names.”

The main indexes of Kenya, Nigeria and Ghana are among the world’s 10 best performers this year, with investors seeking higher returns as the Federal Reserve’s monetary stimulus program pushed buyers into emerging markets seen as riskier.

Kenya’s all-share gauge led the African rally, adding 47 per cent this year to be the world’s fifth-best performer.

Trading volumes on the Mauritian Semdex index will probably jump 30 per cent next year after the Port Louis-based bourse introduced lower trading fees last month, Chief Executive Officer Sunil Benimadhu said in interview at African Securities Exchanges Association conference.

In Kenya, three companies may list on the main bourse, while two others will probably join the Growth and Enterprise Market Segment trading board, set up this year, said CEO Peter Mwangi at the event.

The Federal Government OF Nigeria recently said it would sell its shares in privatised firms through Initial Public Offering.

The Director-General, BPE, Mr. Benjamin Dikki, said the plan is part of the government’s efforts to grow and increase the depth of the capital market.

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