An analysis of Africa PE-backed IPOs between 1 January 2010 and 31 December 2017
The African Private Equity and Venture Capital Association (AVCA) and PwC are delighted to launch the first report analysing exits of African private equity (PE) portfolio companies on the global capital markets. This report provides a historic analysis of PE-backed initial public offerings (IPOs) of African portfolio companies, including companies with significant operations in Africa, between 1 January 2010 and 31 December 2017. We have examined a number of metrics including the volume and value of PE-backed versus non-PE-backed IPOs, pricing, and performance.
The largest number of African PE-backed IPOs, by both volume and value, was in 2010, with five IPOs valued at $1.1bn. This included the single largest PE exit by value, the $681m IPO of Life Healthcare Group on the Johannesburg Stock Exchange (JSE) by Old Mutual Private Equity and Brimstone Investment Corporation (Brimstone). Second in terms of value of PE exits was 2015 at $620m, which included the $334m May 2015 IPO of Integrated Diagnostics Holdings on the London Stock Exchange (LSE).
In comparing share price performance of IPOs over a one-year time horizon from listing date, sub-Saharan African (SSA) PE-backed IPOs outperformed their North African counterparts, with an average increase from offer price of +27%, compared to 0% for North African PE backed IPOs. The lower average performance of North African PE-backed IPOs may be related to economic impacts and market volatility following political and security events in the region, which began in 2011. Post-listing performance of North African non-PE IPOs appears relatively more stable over the period, though this is driven by strong price performance of three IPOs launched in H2 2016 and H1 2017 after regional markets had regained some stability.
Partner, PwC Nigeria
Tel: 234 (1) 271 1700
Partner, Corporate Finance, PwC Nigeria
Tel: +234 1 271 1700
Andrew Del Boccio
Partner, PwC South Africa
Tel: +27 (0) 11 287 0827
Associate Director, PwC Nigeria
Tel: +234 1 271 1700