London’s ailing IPO market gets a boost as African bank eyes float despite Brexit

London was handed a rare boost today after one of Africa’s largest financial institutions said it is planning a $3 billion (£2.4 billion) float in the capital this year.

The African Export-Import Bank, better known as Afreximbank, provides trade finance for large-scale infrastructure projects across the African continent and said it wants to tap capital markets with a listing on the London Stock Exchange.

It comes just days after technology company £4 billion Kaspi canned its float, citing Brexit and instability in the markets.

Figures from EY this week showed that London’s IPO market is at its quietest for a decade.

Afreximbank was founded in 1993 by a consortium of African governments and says it has provided over $69 billion in trade financing since its inception. Its biggest shareholders are the Nigerian and Egyptian governments.

Last year profits came in at $275.9 million, up from $220.5 million the year before.

Sources said it is valued at around $3 billion and JPMorgan and HSBC have been appointed as advisers on the float.