Another Firm on LSE Plans Listing on Nigerian Stock Exchange

By Dipo Olowookere

More companies are considering trading their shares on the Nigerian Stock Exchange (NSE) after a long drought. This year alone, about three firms have joined the local bourse; SAHCO, MTN Nigeria and Airtel Africa.

This month, Airtel Africa became the second company to be listed on the NSE and the London Stock Exchange (LSE) after Seplat.

But information gathered by Business Post indicated that the NSE may welcome a third one and this is Lekoil Limited.

Chief Executive Officer of Lekoil Limited, Mr Lekan Akinyanmi, said in an interview in Lagos that his firm was seriously considering offering its shares in Nigeria.

However, according to Bloomberg, this might not happen until about 2022. Mr Akinyanmi was quoted as saying the energy firm was looking to appoint advisers “in the next 12 to 18 months” to make this a reality.

Nigerian oil and gas production company wants to acquire marginal fields to boost its operations in the country and its CEO said, “We have always been lining up for the marginal-field bid rounds; hopefully at some point the government will actually pull the trigger’’ on bidding.

Mr Akinyanmi said besides broadening its access to funding, a local listing would also tap demand from investors “that are on ground and can see the current realities and also understand the dynamics” of investing in the country.

Standard Chartered Plc is leading a consortium that will raise $170 million by the end of the year to fund infrastructure development and Mr Akinyanmi says this will see output at Lekoil’s Otakikpo joint venture in Nigeria’s Niger delta region rise to as much as 20,000 barrels a day “over the next two to three years,’’ from 5,800 barrels.

Business Post reports that on Friday, shares of Lekoil lost 9.88 percent or 0.45 pence sterling at the LSE to settle at 4.15 GBX.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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