">
TechMoran
  • About Us
  • Deals
  • Jobs
  • Motoring
    • Money
  • Pitch Your Startup
  • Submit Your Post
  • Freelance Gigs
  • Travel
  • Men’s Corner
  • Dating
Saturday, January 23, 2021
  • Startups
  • Reviews
  • Insider
    • Obituaries
  • Business
  • Women
  • Blockchain
  • Columnists
  • Hacks & Facts
    • How To
  • Editions
    • US Edition
    • India Edition
    • MENA Edition
    • Asia Edition
    • Europe Edition
    • International Edition
No Result
View All Result
TechMoran
">
Home Tech

African IPO market realizes strong numbers in 2014 says PwC Report

Caroline Vutagwa by Caroline Vutagwa
6 years ago
in Tech
8 min read
0

ipo

A report released by Price waterhouse Coopers (PwC) says that, in 2014,African equity capital markets (ECM) has been quite active and has experienced a significant increase in both transaction volume and capital raised in 2014 compared to 2013.

The report, dubbed IPO Watch Africa 2014, has found that $11billion was raised in 2014 in the African equity markets across the continent, almost equal to the combined money raised in the whole of 2012 and 2013, which totalled $11.1billion. During 2014, IPO activity also increased overall in number from 20 to 24 IPOs, and doubled in terms of capital raised to $1.7billion from $0.8billion in 2013.

The report analyses equity capital market transactions that took place between 2010-2014 on exchanges throughout Africa, as well as transactions by African companies on international exchanges.

Nicholas Ganz, PwC Africa Capital Markets Leader, says: “The performance of African markets was strong in 2014, with an increase in equity capital market activity of 40 percent in terms of volume of offers and 100 percent in terms of capital raised when compared with prior year activity. We noted a few instances of management following a dual-track approach aimed at maximising value for existing shareholders, and consistent with the growth in other forms of capital raising activity across Africa.”

The report shows a significant share of capital was raised in markets outside of South Africa, with Johannesburg listings accounting for only 32 percent and 44 percent of total IPO capital raised in 2013 and 2014, respectively, a notable departure from its more prominent position in prior years.

READ  African Tech Startups Raised $2.1 billion in Funding in 2019-Baobab Insights

Coenraad Richardson, PwC South Africa Capital Markets Partner, notes a counterpoint in respect of further offers (FOs), “While IPO activity across the continent increased its share vis-à-vis the JSE, FOs remained dominated by capital raising in South Africa, which accounted for 87 percent of proceeds in 2014. This is a reflection of the depth and stability of the South African listed company and investor base, underpinned by a securities exchange regulatory framework ranked number one in the world by the World Economic Forum’s 2014-2015 Global Competitiveness Report.”

Related posts

Top 5 Skills That Modern Software Developers Need to Have

January 22, 2021
0

What Software Developers Need to Know About Burnout

January 22, 2021
0

54gene launches a genome sequencing lab to track infectious and non-communicable diseases prevalent in Nigeria

January 22, 2021
0

Google’s Project Loon, solar-powered internet balloons discontinued

January 22, 2021
0

Overall, FO activity during 2014 increased by 50 percent in terms of the volume of transactions and doubled in terms of capital raised to $9.3 billon from $4.6 billion in 2013.

On a sector basis, the financial services sector (which includes real estate), industrial products & services, and consumer products dominated the market, with the financial services sector representing 57% of combined IPO and FO volume during 2014. Growth in these sectors reflects shifting economic and social demographics, namely an increase in urbanisation and an emergent middle class across the African continent. By contrast, the resources sectors collectively represented a comparatively smaller proportion of 2014 activity.

In addition, a total of $1.2billion of FO capital was raised by African companies on international exchanges since 2010. FOs in this context include those companies seeking to expand their investor base by way of a secondary listing, as well as those raising further funds from existing international listings.  The sector profile of these outbound FOs differs to that of African IPOs and FOs, in that the resources sector plays a more prominent role, when analysing both the number and size of the offer.

READ  Kenyan IT Firm Techno Brain Banned From All World Bank Supported Projects

The JSE safely retained its position in 2014 as the most active African market in terms of both total ECM transaction volume and proceeds. The Tunis and Nigerian Stock Exchanges held the second position on the continent in terms of volume and proceeds raised, respectively.

Building on the strong performance of last year, 2015 is expected to be a positive year for ECM activity in Africa. This is driven largely by a combination of expectations for continued exits by private equity investors, reforms to certain capital markets legislation, and growing investor confidence in and familiarity with African markets.

Darrell McGraw, PwC Nigeria Capital Markets Partner, does note a degree of caution, “due to recent movements in commodity prices and relative depreciation of local currencies against the US Dollar, there are some headwinds that may affect the momentum of the capital markets in Nigeria and other territories heavily involved in resources.  That said, Nigeria has already recorded an IPO in January 2015, and has a strong pipeline of listings likely to be brought to market later this year.”

Readers 920

Share

  • Click to share on Telegram (Opens in new window)
  • More
  • Click to share on Tumblr (Opens in new window)
  • Click to print (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)

Like this:

Like Loading...

Related

Caroline Vutagwa

Caroline Vutagwa

Minding my own business is not enough for me that's why you will always find me minding Africa's Businesses as well as Technology and of course letting you know about it. Talk to me on [email protected]

Related Posts

Tech

Top 5 Skills That Modern Software Developers Need to Have

January 22, 2021
0
Tech

What Software Developers Need to Know About Burnout

January 22, 2021
0
Health

54gene launches a genome sequencing lab to track infectious and non-communicable diseases prevalent in Nigeria

January 22, 2021
0
Tech

Google’s Project Loon, solar-powered internet balloons discontinued

January 22, 2021
0
kplc
Tech

Kenya Power Rolls Out A Smart Metering Project Across The Country

January 21, 2021
0
123movies
Tech

4 Best Free Movie Streaming Sites In Kenya

January 21, 2021
0
Tech

Sophos Named Common Vulnerability and Exposure Numbering Authority 

January 20, 2021
0
Hacks & Facts

Your Ultimate SEO Audit Checklist for 2021

January 20, 2021
0

https://bit.ly/2VOxuoBhttps://bit.ly/2VOxuoBhttps://bit.ly/2VOxuoB
ADVERTISEMENT

Join our Mailing List

Loading

Recent Posts

Top 5 Skills That Modern Software Developers Need to Have

January 22, 2021

Why Bernie Sanders Is A Trending Meme

January 22, 2021

What Software Developers Need to Know About Burnout

January 22, 2021

Which Tech Companies Are Employee Owned and Why?

January 22, 2021

Free money transfer service Taptap Send launches its services to Kenya

January 22, 2021
">
">

Follow Us

">

There are many sites out there focused on blowing off some steam, from funny entertainment to thrilling experiences like playing online, in some cases online gaming could grant you the chance to win extra money. We came across rocketpot.io while browsing for a good btc casino online and it left us a very good impression with their wide variety of games and crypto offering.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy

© 2019 Moran Media Group - All rights reserved TechMoran.

No Result
View All Result
  • Startups
  • Reviews
  • Insider
    • Obituaries
  • Business
  • Women
  • Blockchain
  • Columnists
  • Hacks & Facts
    • How To
  • Editions
    • US Edition
    • India Edition
    • MENA Edition
    • Asia Edition
    • Europe Edition
    • International Edition

© 2019 Moran Media Group - All rights reserved TechMoran.

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
%d bloggers like this: