African Fintech Companies Increasingly Choosing International Markets for Public Offerings

Africa’s most promising fintech startups are poised to go public, with valuations reaching billions of dollars. However, a striking trend is emerging: these companies are increasingly opting for foreign stock exchanges over local ones.

While all four major players – OPay, PalmPay, Airtel Money, and MNT-Halan – plan IPOs between September and November this year, only MNT-Halan has chosen to list on an African exchange (the Egyptian Exchange).

The others are pursuing more global routes:

• OPay (Nigeria) is eyeing a US listing with Citigroup, Deutsche Bank, and JPMorgan Chase at a targeted valuation of $4 billion.
• PalmPay (Nigeria), backed by Transsion and MediaTek, plans a Hong Kong IPO aiming to raise $200 million at a valuation exceeding $1 billion.
• Airtel Money (across 14 African markets) has selected the London Stock Exchange with an expected valuation around $10 billion.

Why Are Africa’s Fintech Stars Looking Abroad?

Several structural barriers explain this trend:

• Currency risk: Companies generating revenue in local currencies but seeking dollar-denominated exits face a mismatch that African exchanges struggle to resolve.
• Liquidity constraints: Local markets lack the depth and participation to support major fintech listings – for example, the Nigerian Exchange cannot currently handle OPay’s projected valuation.
• Governance requirements: The NGX mandates cumulative pre-tax profits of $440,000 over one to three years, which favors established companies over fast-growing tech firms that prioritize market share.

While experts acknowledge potential benefits of local listings (familiarity with investors, less stringent rules), the allure of deeper capital pools and more technology-friendly regulatory frameworks in international markets has proven stronger for these ambitious companies.

A Missed Opportunity for African Investors?

The irony is that these fintechs are built on African demand and serve millions of local users. Yet, much of the wealth created may be realized on foreign exchanges, potentially excluding everyday Africans from owning a piece of their success.

MNT-Halan’s Cairo listing offers a glimmer of hope – demonstrating that local exchanges can host fintech unicorns if fundamental challenges are addressed.