Zenith Bank may list on LSE this month

Zenith Bank Plc expects the British authorities to approve later this month its plan to list up to $850m shares on the London Stock Exchange as global depository receipts.

Reuters quoted a banker close to deal as saying on Tuesday, 'Investors can only switch a maximum of $850m worth of local shares into the GDR programme.

'The GDR price will be based on the naira exchange rate and the local share price of Zenith Bank. Hopefully, it will be listed within two weeks.'

LSE said last week it expected an increase in new listings from African companies this year as businesses in the continent's fast-growing economies seek to attract foreign investors.

Zenith said in October the secondary listing was aimed at improving liquidity in its stock rather than raising capital.

Zenith has all necessary approvals from Nigerian authorities to go ahead with the listing, the banker said, adding that the deal will enable foreigners who prefer to hold dollar assets to invest in the bank.

Zenith has a primary listing in Nigeria with a market capitalisation of N674.7bn ($4.3bn), based on Tuesday's close of N21.49 per share.

One GDR will represent 50 ordinary shares, the bank said.

JP Morgan is acting as the depository bank, while Citi will act as the custodian