Interswitch Suspends $1bn IPO Plan over FX Scarcity crisis

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Interswitch Limited has suspended its plans to raise about $1 billion in an Initial Public Offer(IPO) as investors fuss over further potential weakness in the naira and foreign exchange (FX) shortage.

The company, Interswitch, operates in five African countries, met with banks including Bank of America Corp., Barclays Plc and Standard Bank Group Ltd. about a potential 2016 share sale in Lagos and London.

However, the macroeconomic situation in Nigeria necessitated delaying the plans as potential investors are doubtful on whether they will be able to buy foreign-exchange to get their money out of the country.

It will be recalled that we posted an update on banks suspending international usage of Naira debit cards effective  October 14th, 2016.

This is a fallout of the foreign exchange liquidity concern which continues to linger and has also necessitated numerous reviews and modifications to international usage of naira debit cards by various banks.

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