New IPOs

Most new IPOs in Africa are an instant hit. This is mostly because most of these companies have huge assets base and great potential with very attractive price earning ratios. 90% of IPOs in Africa have performed well above expectation with returns as high as 300% within the first 6 months of listing and this is predicated on the fact they are very few avenues for individual and institutional investors in Africa in general hence most pension funds have few trusted facilities to invest their funds. Equally interesting has also been cases of state run parastatals such as Kengen in Kenya whose listing unlocked a lot of value from these heavily capitalised business. IPOs in Nigeria particularly in financial services sector have recorded sterling performance record. Listing of a number of financial companies remains an interesting investment avenue to consider. Although there has been general apathy in listing of telecommunications companies recent developments in Kenya where Safaricom is considering a public listing will be a magnificent opportunity to invest in. In Zambia listing of CEC will create an opportunity in a copper rich mineral resources sector with tremendous demand in the Chinese market. IPOs provide opportunities.