There are issues around the time and management
demands of completing dual listings in Africa. Panellists at
IFLR’s inaugural Africa Forum discussed the
advantages and disadvantages of the process.
London Stock Exchange’s Africa primary
markets head, Ibukun Adebayo, said some companies view dual
listing as an additional cost, not just in terms of maintaining
the listing, but also in supporting investors and road shows
across multiple geographies.
However, others noted that companies understand the
tangible benefits of global visibility and enhanced profile
that an international listing offers and how these outweigh the
Nonetheless, Adebayo pointed out that, whereas a few
years ago fundraising would have been done through a single
bank, now they are much more likely to involve multiple
"Corporates are focused on reducing transactional risk
and view this additional cost as necessary to give security
that the transaction will take place and that they will be able
to raise enough money from investors globally," said
Alexander Keepin of Berwin Leighton Paisner agreed that dual
listings increase the amount of time lawyers and
have to spend dealing with regulators, particularly in terms of
the ongoing compliance risk.
But, Keepin added, there are practical reasons for looking at
in terms of getting access to additional investors,
different valuation metrics being applied or supporting an
economy in a country in which you operate which means that
companies will continue
to look at dual listings.
"I think a number of companies have identified this as an
opportunity, which outweighs the cost," added
In terms of ongoing obligations, companies need to be
visibly transparent at all times, reporting at least twice a
"A company has a number of challenges once it comes to
market, but it’s really a question of making sure
that the behaviours of the company reflect that which the
company aspires to," said Adebayo.
"For overseas international listings, this means the
company should introduce distinct changes of behaviour that
reflect its increased status," he added.
The second big challenge is continued communication
"An IPO is not the end of the process," said Adebayo.
"The London buy-side community is pretty unforgiving - money
hasn’t been invested lightly so being fully
engaged with them is very important."