JPMorgan CEO Jamie Dimon Photograph by Stuart Isett/Fortune Global Forum

According to a report from Bloomberg, Nigeria-based payments company Interswitch has courted investment banks including JPMorgan Chase, Citgroup and Standard Bank Group for an IPO that may value it at between $1.3 billion to $1.5 billion. Interswitch earlier planned to list in 2016 but pulled back after economic hassles in Nigeria that sprouted from a tumble in crude oil prices.

After a steep drop in crude oil prices, the Nigerian currency [Naira] was weakened against the dollar, affecting revenues at payments firms in the country. Interswitch would have had to report lower revenues [when calculated in foreign currency] if it had to list at that time. Other financial hassles could have also emerged as a result. Although the Naira hasn’t recovered to its previous level, Interswitch may have made some adjustments in the three year [2016-2019] gap from its delayed IPO till now.

Earlier this year, another African e-commerce startup, Jumia, had a successful IPO on the New York Stock Exchange. Shares of the e-commerce firm soared above 50% during its first day of trading. Interswitch could be looking to replicate such event.

Another African-focused financial services company, Bayport, is also considering a share sale this year, although no finalized decision has been made.

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print