Nigerian Payment Service Provider Interswitch Mulls Going Public

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Interswitch is reviving its plans for an initial public offering, IPO, via a dual listing on the Nigerian Stock Exchange and London Stock Exchange according to reports from Bloomberg. The market listing of its shares is expected later this year.

Bloomberg reports Interswitch has hired financial advisers, JPMorgan Chase & Co, and Standard Bank Group as firms working on the potential initial public offering. Firms typically hire financial advisers when they decide to list on the stock market to help with valuation, marketing of the offer, compliance with listing rules and other regulatory filings.

In 2015, Interswitch announced plans for a dual listing on the Nigerian Stock Exchange and London Stock Exchange, a move that would have made it the second Nigerian company, after Seplat to have a dual listing.

However, the ensuing exchange crisis affected the company’s plans resulting in the listing being suspended. Interswitch planned to list in the summer of 2017 but canceled the plans in December 2016 due to exchange rate crisis.

Foreign investors who they were targeting for the listing developed cold feet following the currency crisis making it difficult for the company to proceed.

Had they gone on to list, they may not have been able to raise significant capital from Nigeria.

In August 2017, Nairametrics had a tweet chat with the CEO of Interswitch, Mitchell Alegbe where he mentioned that plans to list the company shares were still on the table.

 

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