Interswitch has put on hold its $1 billion Initial Public Offering (IPO) plans owing to Nigeria’s declining macroeconomic climate and the uncertainties over the exchange rate.
Interswitch IPO Suspended
Interswitch, the leading payments processing company based in Lagos, has put on hold its $1 billion Initial Public Offering (IPO) plans owing to Nigeria’s declining macroeconomic climate and the uncertainties over the exchange rate, Bloomberg said on Tuesday.
Elegbe, the CEO of Interswitch said “The macroeconomic situation in Nigeria is the determining factor. Potential investors are jittery about the naira exchange rate and whether they will be able to buy foreign-exchange to get their money out of Nigeria.”
Interswitch has been planning a dual listing through an IPO in Lagos and London since 2015 as it seeks to scale up operations across Africa. The company operates in Kenya, Tanzania, Uganda and Gambia currently.
Apart from the expansion, the Interswitch planned the IPO to allow Helios Investment Partners reduce its majority shareholding in the payments company.
The London-based private equity firm, Helios took a 52% stake worth $96 million in Interswitch in 2010.
With its IPO plans now on hold, Elegbe said Interswitch will concentrate launching operations in two East African countries.
Founded in 14 years ago, Interswitch – owns Verve, a widely used brand of debit cards – processes payments for most Nigerian banks and is at the head of Nigeria’s fast growing e-payments sector.
Earlier in September, Interswitch completed its 100% ownership of Value Added Network Solutions Limited (Vanso), a financial technology provider, for around N15 billion.