The Nation Newspaper

Category: Capital Market

  • LCFE seeks partnership with Czech Republic

    LCFE seeks partnership with Czech Republic

    The Lagos Commodities and Futures Exchange (LCFE ) is seeking partnership with Czech Republic in its pursuit to mainstream Nigeria into a pivotal position in the global commodities market.

    The deal is expected to cover many areas, including exchange programme, agriculture and trade and are expected to lead to enhanced relationship with the European Union (EU).

    Czech Republic is renowned for many business opportunities and the country has comparative advantage in traditional mercenaries, sophisticated software and export of different mineral resources.

    The country has assisted Nigeria in  research and development.

    Addressing a delegate led by Czech’s Ambassador to Nigeria, Zdenek krejci, who was on a visit to LCFE, the Exchange’s Managing Director, Mr Akin Akeredolu-Ale explained that Nigeria and Czech Republic reinforced their relationship with technology transfer last year.

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    According to him, the partnership between the Czech Republic and Nigeria has N9 Billion direct support for 25 Nigeria’s registered companies to start off in the country under the Delta-2 Programme.

    Akeredolu-Ale said LCFE was willing to partner the Czech Republic for mutual benefits of both parties, saying: “The ecosystem is rich is solid mineral resources and agricultural commodities. Likewise, the Czech Republic trades machinery and transport Equipment, electronic equipment, chemicals, fuels, iron and steel, oil and mineral fuels, wood, aluminium, wool, wheat, rapeseed, and maize.

    “A new world order is coming. Nigeria has 44 solid mineral resources. This presents various opportunities for collaboration and partnerships. Together, we can build economic bridges, forge partnerships, and pave the way for a future where commodities and futures trading continue to play a pivotal role in shaping the global economic landscape.”

    Krecji expressed willingness for such collaboration. He noted that Czech Republic had a lot of opportunities for companies to grow. The Ambassador said: “We are strong in traditional mercenaries. We develop sophisticated softwares and produce world-class equipment for companies. We need reliable partners. If a company comes from Nigeria, we are here to expand opportunities in a way that the company shall benefit from European Union (EU).”

    LCFE’s Chairman, Chief Onyenwechukwu Ezeagu explained that the relationship between LCFE and Czech Republic would enrich the cultural ties of both countries.

    “As we look forward to strengthening the ties between the Czech Republic and our great nation, Nigeria, Lagos Commodities and Futures Exchange Limited wishes to be one of the channels through which this can be achieved. We, at LCFE, are excited to explore avenues of collaboration that will not only enhance trade but also enrich the cultural fabric of our nations,” Ezeagu said.

    On the Delegate of Czech Republic were Dr Dere Awosika, a Honorary Consul of Czech Republic , Marie Nwanyanwu in the Economy and Trade Section of Czech’s Embassy in Nigeria and Chief Anthony Aletor, Chairman,

    Capital Express Holdings. The event was an also attended by LCFE’s Non-Executive Director, Alhaji Rasheed Yussuff and the 1st Vice President, Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada and other market operators .

  • Chams assures on enhanced values

    Chams assures on enhanced values

    • Honours directors

    Chairman, Chams Holding Company Plc, Sir Demola Aladekomo, has assured that the group would ensure enhanced value delivery to its shareholders and the financial services industry.

    Aladekomo spoke during a send-off party to celebrate some retiring directors.

    The retired directors included Dr. Dere Awosika, Dr. Evans Woherem; Pastor Ituah Ighodalo; Mr. Femi Williams; Mr. Gavin Young, Mrs. Funke Alomooluwa; Mr. Emmanuel Ojo and Mr. Kehinde Lapite.

    Aladekomo said the firm had been on a journey for the last 38 years. He noted that the journey was filled with “highs and lows.” Aladekomo was filled with appreciation for the staff but, most importantly, the retired directors who were the key drivers behind the firm’s greatness today.

    “This is to celebrate the 38th year journey that has been most interesting. A journey that speaks of perseverance and service to humanity. A journey that produced a lot of great men and women. Tonight, we celebrate some of those that directed the affairs of this company, which means quite a lot to Nigeria. They worked on a project that solved a lot of problems in the Nigerian financial industry. Today, you can transact business in the bank due to their reforms of the e-payment solution,” Aladekomo said.

    He commended the team at the Nigerian Interbank Settlement System (NIBSS) that worked with the Chams’ team in delivering the Bank Verification Number (BVN) project and appreciated them.

    Group Managing Director, Chams Holding Company Plc, Mrs. Mayowa Olaniyan, said the retired directors needed to be appreciated in view of the great work they did in the company.

    “Even though they were non-executive directors, they worked just like executives, and they have been highly supportive after their retirement. The least we can do to appreciate them is to honor them with this send-forth programme,” Olaniyan said.

    Olaniyan, who x-rayed the work of her predecessor, Gavin Young, said the former Group Managing Director at Chams Nigeria did great work. She credited him for creating value in the system and reviewing the solutions. She explained that she was leveraging his work.

    In her message to the shareholders, she said Chams would continue to play a major role in Fintech and has one of the highest licenses in the industry. “Our Cardcentre recently partnered with a few companies within Nigeria and in Asia, and it has strengthened capacity and improved operations. Chamsswitch has recently partnered with some banks. This is the time for our shareholders to smile.”, Olaniyan said.

    One of the retired Director, Mrs. Funke Alomooluwa, who responded on behalf of others, expressed the joy of the retired directors for the recognition of their contributions to the growth and development of the Company.

    AlomoOluwa explained that she worked under the tutelage of Aladekomo when she was a member of the National Youths Service Corps (NYSC). According to her, she was later privileged to serve on the team that delivered the BVN, which revolutionized Nigeria’s banking system.

  • Why Investments and Securities Bill yet to be passed, by SEC DG

    Why Investments and Securities Bill yet to be passed, by SEC DG

    The Director-General, Security and Exchange Commission (SEC), Mr. Lamido Yuguda has explained that certain observations and resolutions by stakeholders after the passage of the Investments and Securities Bill (ISB) by the Ninth National Assembly, necessitated the further review of the Bill by the 10th National Assembly.

    While this review, according to him, delayed the assent by former President Muhammadu Buhari, he expressed confidence that the Bill will soon be passed and assented to by President Bola Tinubu, as it has passed the first and second reading in the 10th National Assembly.

    He further said there were a few typographical errors in the Bill passed by the ninth National Assembly that needed to be rectified, else, there would perpetually be a need for the Commission to seek amendments in the future.

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    Recall that in April, this year, the ninth National Assembly passed the Bill for an Act to repeal the Investments and Securities Act 2007 Act No. 29 2007 and enact the Investments and Securities Bill 2023.

    The Bill seeks to establish a new market infrastructure and wide ranging system of regulation of investments and securities businesses in Nigeria, especially in derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms.

    The SEC boss, therefore, stated that the Bill, which has novel provisions, upon assent, will give the Capital Market a newer impetus, and will also strengthen existing provisions. 

    “The ISB has passed the 9th National Assembly, and was actually submitted for Presidential assent. But at the point of discussion between stakeholders that needed to then look at the Bill as passed by the National Assembly, there were observations that were raised, and the resolutions of those observations did not really benefit from the tight time-frame of which the last administration worked. This was in early May. 

    “So, before it could be resolved, the time for the last administration had expired, and it was passed back to the National Assembly. It has already passed the second reading, and it is  before the National Assembly, House of Representatives Committee, and they are actually looking at this. Legislation is a very sensitive activity.

    “Even within the Commission, we realised from the final draft that came out, there were areas with typographical errors, such that if they had been passed, would necessitate us going back to the National Assembly to seek an amendment.

    “So, we also had issues from our own side. A few other government agencies had issues from their own side too. The Bill is very ready to be passed because if it was not in a good state, it would not have passed the first and second reading that were done in the 10th Assembly now. SEC is actively pursuing the ISB. 

    “The ISB is really reflective of the modern Capital Market and the kinds of achievement that we are trying to do. It has a lot of provisions for commodities exchange for example, which were not in the 2007 Act. So, I think while we have this new legislation, the capital market will have a much newer impetus because of the very novel provisions and the strengthening of existing provisions that have been done within this particular Bill,” Yuguda said, during a virtual post-Capital Market Committee (CMC)  briefing.

  • Capital market optimistic reforms’ll rejuvenate economy ‘

    Capital market optimistic reforms’ll rejuvenate economy ‘

    Stakeholders in the capital market are optimistic ongoing reforms will rejuvenate the economy and lead to a brighter future for the country.

    This was part of the highpoints of the meeting of the Capital Market Committee (CMC), a consultative assembly of stakeholders in the  capital market.

    Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, who presented the outcome of the second meeting of CMC at the weekend, said there was a shared sense of optimism that the rigorous reforms would retoll the nation’s economy.

    Not fewwr than 277 stakeholders attended the CMC meeting. They included management and senior staff of SEC, capital market operators (CMOs), representatives of relevant government agencies such as the Central Bank of Nigeria (CBN), Debt Management Office (DMO), Federal Inland Revenue Service (FIRS), Investments and Securities Tribunal (IST), National Insurance Commission (NAICOM), National Pension Commission (PENCOM), and Financial System Strategy 2020 (FSS2020).

    Read Also: Senate Committee appoints adviser on capital market

    According to Yuguda, despite the prevailing challenges arising from demanding macroeconomic conditions, constrained consumer spending, and rising operational costs, stakeholders were positive on the outlook for the economy.

    He emphasised the need for a resolute support of the capital market to the federal government in navigating these challenges for the country’s brighter future.

    He noted that while the road ahead is, undeniably, challenging, the capital market must step forward in whatever way to lend its helping hand to the economic reforms.

    He said that capital market stakeholders must be ready to make sacrifices to help drive the economic transformation that will change the nation’s fortunes for the better.

    He pointed out that the President Bola Tinubu’s administration has ushered in a sense of optimism on market reforms, noting that the peaceful national elections and the inauguration of Tinubu have had positive impact on the capital market.

    Citing the 5.23 per cent gain recorded by the stock market on the inauguration day, Yuguda assured that the capital market would play supportive roles to ensure the success of the new government’s agenda.

    “The meeting underscored the Capital Market Committee’s dedication to propelling Nigeria’s economic growth, fostering collaboration, and embracing innovation to build a thriving future for Nigeria. It once again offered the capital market as a viable source of infrastructure financing for development,” Yuguda said.

    He added that a round table discussion had gathered valuable inputs from market participants which would be put together for the new administration, underscoring the commitment to reposition the capital market as a driver of economic growth in line with the vision of the new government.

    He also noted various efforts to strengthen the market’s attractiveness, including streamlining listing processes, advocating smoother issuances, and encouraging private equity involvement in the infrastructure sector.

    According to him, to discourage the trend of companies delisting from the capital market, SEC is actively collaborating with the Exchanges to enhance approval procedures, aiming to render listing processes more streamlined, more efficient, and economically viable.

    He said advocacy initiatives were underway to address hurdles related to issuances and to motivate prospective issuers to consider market-based funding options.

    He, however, warned the investing public to shun unregistered platforms purporting to be offering investment opportunities, reiterating the Commission’s circulars warning the public on the activities of Binance, Luno, PaxFul, Coinbase, and other unregistered platforms, as investing in crypto-assets carries a high level of risk and may result in total loss of investments.

  • MTN Nigeria swaps cash dividends for N149b shares

    MTN Nigeria swaps cash dividends for N149b shares

    Nigeria’s leading telecommunications company, MTN Nigeria Communication (MTN Nigeria) Plc has allotted 641.05 million ordinary shares of 2.0 kobo each to shareholders that elected to convert their cash dividends to equity stakes.

    Regulatory report at the Nigerian Exchange (NGX) indicated that MTN Nigeria allocated 641.047 million ordinary shares to shareholders under its recent scrip dividend election scheme.

    The allotted shares were added to the total outstanding shares of MTN Nigeria at a listing price of N232.68 per share, representing immediate market value of N149.15 billion.

    The supplementary listing increased the total issued and fully paid up shares of MTN Nigeria from 20.35 billion to 20.996 billion ordinary shares of 2.0 kobo each.

    The Nation had reported that MTN Nigeria had decided to explore a cash dividend conversion arrangement that allows shareholders to convert their cash dividends to shares.

    MTN Nigeria had declared a final dividend of about N204 billion for the 2022 business year, representing a final dividend per share of N10. This increased the total dividend payout for the 2022 business year to about N318 billion or N15.60 per share, after the company had paid interim dividend of N113.99 billion or N5.60 per share during the year.

    The final dividend was paid electronically on April 20, 2023 to shareholders on the register of the company by the close of business on March 27, 2023. 

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    The two-way optional dividend arrangement was presented and approved by shareholders at the April 18, 2023, allowing shareholders to make their choices ahead of the April 20, 2023 dividend payment date.

    MTN International (Mauritius) Limited, which holds 72.83 per cent controlling equity stake in MTN Nigeria, was expected to be the biggest beneficiary of the dividend conversion option.

    Key extracts of the audited report and accounts of MTN Nigeria for the year ended December 31, 2022 showed double-digit growths across key performance indicators.

    Total revenue increased by 21.6 per cent to N2.01 trillion. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 22 per cent to N1.1 trillion. EBITDA margin thus inched up by 0.2 percentage points to 53.2 per cent. Profit before tax rose by 22.3 per cent to N534 billion. After taxes, net profit improved by 20.2 per cent to N358.9 billion.  Thus, earnings per share (EPS) rose by 21.3 per cent to N17.79 kobo in 2022.

    Total assets rose from N2.26 trillion in in 2021 to N2.72 trillion in 2022. Total liabilities rose from N2 trillion in 2021 to N2.38 trillion in 2022. Shareholders’ funds increased from N264.99 billion to N334.24 billion.

    The operational report also showed considerable improvements with mobile subscribers rising by 10.5 per cent to 75.6 million, adding 7.2 million subscribers in 2022. Active data users increased by 15.3 per cent to 39.5 million, an addition of 5.2 million active users in 2022. Active fintech subscribers also rose by 57.5 per cent to 14.9 million, with two million active mobile money (MoMo) wallets since the launch of PSB.

  • CWG gets three years to dilute shareholdings

    CWG gets three years to dilute shareholdings

    Authorities at the Nigerian Exchange (NGX) have granted CWG Plc a three-year deadline to dilute its unduly concentrated shareholdings structure and make more shares available to the minority retail investors.

    The Board of CWG confirmed that the NGX approved a three-year extension for the company to comply with the stock market’s rule on the minimum percentage or value of a company’s shares that must be in the hands of minority retail shareholders. This is known as free float.

    According to CWG, the extension would allow the company to comply with NGX’s free float requirements of 20 per cent of issued and fully paid share capital or N20 billion of market capitalisation for companies listed on the main board of the NGX. CWG is listed on the main board and has a float of 16.50 per cent, below the required 20 per cent for its category of listing.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

    Rule 3.1.4 of the NGX rules stipulates that “the Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe”.

    The board of CWG stated that it remains committed to good corporate governance practices by ensuring that the free float deficiency is cured within the stipulated timeline given by NGX Regulation Limited (NGX RegCo), failing which NGX RegCo may suspend trading in its securities.

    Under the enhanced free float compliance status being implemented by the NGX, quoted companies are required to indicate their shareholding structure and compliance level with the minimum number of shares or capitalisation being held by minority retail shareholders in their half-year reports, in addition to their full-year reports.

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    Companies are also be required to undertake periodic self-assessment of their free float compliance and report any breach or shortfall to the Exchange. The enhanced rules place the onus of investigation and compliance on the companies, in addition to existing surveillance by the capital market authorities.

    According to the amended rules, every company shall independently review its free float every half-year or other reasonable time, and when there is a breach of its free float requirement, disclose this to the Exchange and immediately initiate the steps to remedy the default and comply with its free float requirement.

    The enhanced rules mandate the Exchange to commence the process of delisting any company that fails to respond to specific notice on free float default within 10 business days of receiving the notification or any company that fails to produce and submit an acceptable compliance plan to the Exchange within three months of being notified of falling short of free float under the Exchange’s periodic “X-Compliance Report”.

    The NGX is also expected to commence delisting process if the company’s compliance plan is not acceptable to the Exchange, and the company fails to produce and submit an acceptable alternative plan within 21 business days of the Exchange’s rejection of the initial plan. The NGX can also trigger the delisting process if the defaulting company is unable to return to a state of full compliance within such period as indicated in the company’s compliance plan approved by the Exchange.

    The enhanced rules, in addition to existing percentage free float requirement, also provide the minimum number of minority retail shareholders and minimum capitalisation that can serve as alternative free float to percentage of shares.

    Thus, companies listed on the premium board are required to have 20 per cent free float or more than N40 billion of their capitalisation in the hands of general investing public. Companies on the main board are required to have a minimum free float of 20 per cent of their market capitalisation, implying that 20 per cent of the companies’ shareholdings must be available for minority retail shareholders.

    However, companies on the Alternative Securities Market (ASeM) are required to have 15 per cent free float.

    With the amendments, free float of companies on the premium and main boards must be held by not less than 300 shareholders while those on Alternative Securities Market (ASeM) must be held by not less than 51 shareholders. A new board, to be known as growth board, will have free float of between 10 to 15 per cent, which must be held by between 25 to 51 persons.

    The amendments introduced capitalisation method, which previously applied only to premium board, for the other boards. Minimum value of free float for companies on the main board is N20 billion while ASeM and growth board have alternative value of N50 million.

    The new rules however retain NGX’s prerogative to grant extension of time to any company to comply with the minimum free float requirements if the Exchange believes that the market can operate fairly and in an orderly manner with the company’s existing level of free float or the NGX has received an undertaking from a majority shareholder or many shareholders with at least five per cent shareholding to make available to the minority retail investing public a specific number of securities required to restore the company to the required free float level within such period as the Exchange may approve.

  • Senate Committee appoints adviser on capital market

    Senate Committee appoints adviser on capital market

    Chairman, Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, has appointed a former Imo State Commissioner for Finance, Prof. Uche Uwaleke of Nasarawa State University, Keffi, as his Special Adviser.

    Uwaleke will provide ideas and support the committee’s activities aimed at moving the market forward.

    This was contained in a letter of appointment personally signed by Izunaso.

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    “Having followed with keen interest your display of deep knowledge of the capital market through numerous media engagements and academic publications some of which I have come across, as Chairman of the Senate Committee on Capital Market & Institutions, I have no doubt that your advice will assist me and members of my committee to exercise adequate oversight on the Nigerian capital market,” Izunaso said.

    Uwaleke, who is Nigeria’s first professor of capital market, is also the President of the Capital Market Academics of Nigeria and a former head, Department of Banking and Finance, Nasarawa State University.

    He is Director, Institute of Capital Market Studies, Nasarawa State University, Keffi.

  • NAHCO Aviation Academy gets NCAA’s approval

    NAHCO Aviation Academy gets NCAA’s approval

    NAHCO Aviation Academy, a fully – owned subsidiary of the Nigerian Aviation Handling Company Plc (NAHCO), has been accredited as an approved training organisation (ATO) by the Nigeria Civil Aviation Authority (NCAA).

    The accreditation came after a painstaking process conducted by the regulatory body, with the new company excelling in all aspects of evaluation.

    In a letter confirming the approval, NCAA stated that NAHCO Aviation Academy has met the requirements for approval as an approved training organisation in compliance with the Nigerian civil aviation regulations.

    Senior Manager, New Business, Nigerian Aviation Handling Company (NAHCO) Plc, Mr Emmanuel Illah said the approval of the aviation academy as an ATO was in line with NAHCO’s commitment to provide the industry with highly trained manpower for next generation aviation services.

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    According to him, as an ATO, the academy is now authorised to offer a wide range of courses to airlines, ground handling services provider, licensed customs agents, provider of security service in aviation and members of the public who are aspiring to obtain aviation certifications.

    He outlined that the academy was accredited to provide training in all aspects of operations assistant and officer, cargo services assistant and officer, flight services officers or load controllers, ground support equipment (GSE) operatives in three primary categories and passenger handling personnel

    “These comprehensive training programmes are designed to cater to key stakeholders in the aviation value chain and individuals aspiring to pursue a career in the aviation industry,” Illah said.

    He said that NAHCO Aviation Academy’s team of highly experienced internal and external Faculty members will offer training in key aspects of the industry even as efforts are being made to ensure the sustenance of state of the art facilities which impressed the NCAA’s team.

    Speaking on the motive for the establishment of the training school, Illah said it became imperative for NAHCO, a big industry player in the country and the West Africa sub-region to begin to think of the future of the industry and to provide quality manpower that would not only sustain the industry but elevate it to the next level.

  • Nigerian equities lose N330.8b amid global slump

    Nigerian equities lose N330.8b amid global slump

    Nigerian equities closed weekend with a net loss of N330.82 billion amid fears that rising inflation and volatility in the foreign exchange (forex) market could further hurt businesses and dampen returns.

    Benchmark indices for Nigerian equities indicated average decline of 0.93 per cent for the week, equivalent to net capital depreciation of N330.82 billion. The average year-to-date return for Nigerian equities thus reduced to 26.28 per cent.

    The All Share Index (ASI) – the value-based common index that tracks all share prices at the Nigerian Exchange (NGX) – dropped to 64,721.09 points at the weekend as against the week’s opening index of 65,325.37 points.

    Aggregate market value of all quoted equities also dropped from its week’s opening value of N35.572 trillion to close at N35.422 trillion. The gap in the rates of decline between the ASI and market capitalisation was due to the listing of additional shares by MTN Nigeria Communications (MTNN) Plc.

    The bearishness at the market mirrored the global outlook as investors worried over possible rise in interest rates. All major global equities indices closed negative at the weekend. In United States, the Dow Jones Industrial Average (DJIA) dropped by 2.3 per cent while the S & P 500 declined by 2.1 per cent. United Kingdom’s FTSE 100 Index dipped by 3.3 per cent.

    Europe’s broad index, STOXX Europe dropped by 2.2 per cent. Japan’s Nikkei 225 depreciated by 3.1 per cent while China’s SSE Index declined by 1.8 per cent. The MSCI EM Index, which tracks emerging markets, lost 1.3 per cent while the MSCI FM Index, which tracked frontier markets, dipped by 2.4 per cent.

    Total turnover at the NGX stood at 1.689 billion shares worth N29.407 billion in 29,477 deals last week compared with a total of 1.741 billion shares valued at N25.087 billion traded in 30,652 deals two weeks ago.

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    The financial services sector led the activity chart with 1.166 billion shares valued at N16.925 billion traded in 13,819 deals; representing 69.04 per cent and 57.55 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with 191.320 million shares worth N843.336 million in 1,829 deals while the oil and gas sector placed third with a turnover of 64.352 million shares worth N810.637 million in 2,159 deals.

    The trio of FBN Holdings Plc, Transnational Corporation Plc and Fidelity Bank Plc, were the most active stocks, altogether accounting for 576.688 million shares worth N6.911 billion in 3,524 deals, representing 34.14 per cent and 23.50 per cent of the total equity turnover volume and value respectively.

    Also, a total of 30,336 units of exchange traded products valued at N2.039 million were traded in 69 deals compared with a total of 70,841 units valued at N2.863 million traded in 85 deals two weeks ago.

    At the secondary bond market, a total of 292,995 bond units valued at N294.933 million were traded in 48 deals compared with a total of 133,413 units valued at N142.419 million swapped in 38 deals penultimate week.

    There were nearly two decliners for every advancer during the week. Sunu Assurances Nigeria led the 56-stock losers’ chart with a drop of 28.70 per cent to close at 82 kobo. Guinea Insurance followed with a loss of 25.64 per cent to close at 29 kobo. NEM Insurance dipped by 10 per cent to close at N5.40. Unity Bank lost 9.79 per cent to close at N1.29. Eterna declined by 9.39 per cent to close at N17.85 while Caverton Offshore Support Group dropped by 9.15 per cent to close at N1.29 per share.

    On the positive side, CWG rose by 25.83 per cent to close at N3.80. The Initiates followed with a gain of 23.40 per cent to close at N1.16. John Holt added 20.83 per cent to close at N1.45. Linkage Assurance appreciated by 18.07 per cent to close at 98 kobo while Prestige Assurance rose by 17.39 per cent to close at 54 kobo per share.

    Analysts at Cordros Capital said they expected the market performance to stay mixed in the week ahead as investors rebalance their portfolios following an assessment of first half 2023 corporate earnings.

    “In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Capital stated.

    Analysts at Arthur Steven Asset Management said they also expected “a balanced trend in the banking sector” as the market awaits the release of remaining earnings in the sector.

  • McNichols Consolidated to raise N266m from shareholders

    McNichols Consolidated to raise N266m from shareholders

    McNichols Consolidated Plc is seeking to raise about N266 million in new equity funds from existing shareholders.

    McNichols Consolidated is offering 531.24 million ordinary shares of 50 kobo each at par value of 50 per share. The rights issue has been allotted on the basis 17 new ordinary shares for every 23 ordinary shares held at the close of business on September 16, 2022.

    Application list for the rights issue is expected to close on August 31, 2023.

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    The Nigerian Exchange (NGX) has also started trading in the rights, allowing its shareholders to trade on their rights through the secondary market. New investors are allowed to purchase such rights, usually at pre-agreed or prevailing market price.

    McNichols Consolidated is one of the pioneers on the growth board of the NGX. The growth board is a platform for small and medium companies with track records of stable operations, growth and minimum corporate governance to list their shares and raise capital through the Nigerian capital market.

    The growth board supports small and medium enterprises (SMEs) with direct access to capital and support services from the capital market.

    Besides reduction in costs of listing and compliance requirements, the NGX, in collaboration with various strategic business partners and value added service providers, provide support services aimed at creating competitive edge for companies on the board. These support services include pre-listing diagnostics; institutional services such as audit services, financial advisory, legal advisory, corporate strategic advisory; investor relations; analyst coverage, corporate access and corporate governance and customised trainings.

    For a company to be listed on the growth board, it must be a duly incorporated public limited liability company with at least two years of operations, audited financial statements in line with the International Financial Reporting Standards (IFRS) and must have grown its revenue by a minimum of 20 per cent cumulatively in its last two years of operations.

    Also, all companies to be listed on the growth board must undertake that their promoters or directors shall retain a minimum of 50 per cent of their shares for a minimum period of 12 months from date of their listing, and that the directors or promoters shall not directly or indirectly sell or offer to sell such securities during that 12-month period.

    The framework, meanwhile, provides alternative requirements for listing for each segment. Under the entry segment, a new business may be considered for listing if it can provide evidence of investment in it by a core investor or a strong technical partner that has a minimum of two years’ operating track record, or a majority shareholder who is either a High Net Worth Individual (HNI) or is a director of a listed company.

     Under Nigerian rules, HNI is an individual with net worth of more than N100 million.

    Besides, companies heading for the entry segment must have market capitalisation of not less than N50 million, a minimum of 10 per cent of its shares available or to be available to minority retail investors and at least 25 shareholders.

    Under the standard segment, a new business may be considered for listing if it that can provide evidence of a core investor or a strong technical partner who has a minimum of four years’ operating track record, or a majority shareholder who is a HNI. The company must also have a minimum market capitalisation of N500 million, at least 15 per cent of its shares must be held or will be held by minority retail shareholders and it must have a minimum of 51 shareholders.