Category: Capital Market

Fidelity Bank Plc at the weekend completed a N14 billion private placement with the listing of about 3.04 billion ordinary shares issued to two major investors under the private share placement.

Regulatory report at the weekend indicated that a total of 3.037 billion ordinary shares of 50 kobo each were added to the outstanding shares in the name of Fidelity Bank at a price of N4.60 per share. 

The supplementary listing increased the total issued and fully paid up shares of Fidelity Bank from 28.97 billion shares to 32.01 billion ordinary shares of 50 kobo each.

The additional shares were sold to two strategic investors, under a capital raising plan aimed at beefing up the capital base of the mid-tier bank.

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Under the private placement, two applications were received and were fully allotted. A strategic investor purchased 2.75 billion shares at N4.60 per share in a deal valued at N12.65 billion. This represents about 8.594 per cent in the post-offer share capital.

Another investor acquired 287.41 million ordinary shares of 50 kobo each at N4.60 in a deal valued at N1.322 billion, representing about 0.897 per cent of the enlarged post-issuance share capital.

Nigeria’s apex capital market regulator, Securities & Exchange Commission (SEC) had cleared the full allotment of the private placement.

Fidelity Bank had adopted the private placement option as a way to comply with provisions of Section 124 of the Companies and Allied Matters Act, 2020 and the Companies Regulations 2021, and pursuant to Paragraphs 9 and 10 of the Articles of Association of the company. Recent changes in corporate laws disallow keeping subsisting unissued shares, leaving companies with the option of cancelling current unissued authorised share capital or issuing out such shares.

Shareholders had at an extraordinary general meeting  last October in Lagos approved the private placement, waiving their pre-emptive rights to the unissued shares to be allocated to select private investors and approved that such issued shares to private investors shall rank in all respect equally with the existing ordinary shares of the bank.

Fidelity Bank is building up its capital base as the bank increases its market share.

On the back of the success of the N14 billion private share placement, the bank recently launched a hybrid capital raising plan aimed at sourcing some N90 billion in new equity funds from existing and new shareholders.

The bank plans to issue 13.2 billion ordinary shares of 50 kobo each to new and existing investors to boost the bank’s capital base.

The bank plans to increase its share capital from N16 billion or 32 billion shares to N22.6 billion or 45.2 billion shares through creation of  additional 13.2 billion ordinary shares of 50 kobo each

Under the plan, the bank is seeking to float a public offer of 10 billion shares  and a rights issue of 3.2 billion shares. The rights issue will be allotted on the basis of one new share for every 10 shares held.

At the current market valuation,  market analysts estimated that the bank may be able to raise some N90 billion, although the final offer prices may be determined by the market situation and the extent of discount the bank prefers for its rights issue.

The Nigerian Exchange (NGX) upgraded Fidelity Bank from a low-priced stock to medium-priced stock following recent appreciation in the share price of the commercial bank.

According to the NGX, Fidelity Bank traded above the N5 mark on February 20, 2023 and has remained above the N5 mark up until close of business on June 30, 2023, thus necessitating the upgrade to medium-priced stock in line with the three-tier, price-based categorization at the Exchange.

Fidelity Bank has said it needed new capital to sustain its current strong growth trajectory in order to increase profitability, domestic and international expansion and enhancement of its digital capabilities.

“Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the bank remains agile, adaptable and properly positioned to respond appropriately to developments, while remaining a competitive and forward looking institution,” the bank stated.

According to the bank, the new hybrid capital raising is aimed at ensuring that the bank can take advantage of emerging business opportunities and secure long term profitability and competitive advantage, while ensuring increased shareholder value.

Managing Director, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe said the bank was growing in leaps and bounds and needed to expand its capital base to take advantage of emerging opportunities.

“We will also use the additional capital to enhance our technology infrastructure to enable us to serve more customers,” Onyeali-Ikpe said.

• 50% of quoted companies compliant

The NGX Regulation (NGX RegCo), the self-regulatory organisation that regulates activities at the Nigerian Exchange (NGX), is considering a review of the market’s sustainability disclosure requirements to align the Nigerian market with emerging global trends.

Chief Executive Officer, NGX Regulation (NGX RegCo), Ms Tinuade Awe, said while the NGX had launched its Environmental, Social, and Governance (ESG) disclosure guidelines in 2019, there was the need to review these guidelines in accordance with the emerging International Sustainability Standards Board (ISSB) Standards, alongside the evolving landscape of global ESG expectations.

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According to her, 50 per cent of listed companies on NGX have fully integrated sustainability reporting into their annual reports or have released dedicated standalone reports.

She pointed out that the practice of ESG reporting will enhance Nigeria’s global standing in terms of ESG performance and reputation.

She urged corporate entities to embrace this initiative, as it would contribute to Nigeria’s aspiration of achieving carbon neutrality by 2060.

She pointed out that in the light of the rapidly evolving global ESG landscape, there is need for a deliberate partnership between both public and private sector stakeholders in Nigeria as this would enable them to embrace their shared responsibility in building a sustainable future.

She added that ESG reporting not only raises awareness of worldwide trends in climate-related reporting but also aligns with established guidance frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and the recently introduced International Sustainability Standards Board (ISSB) S1 and S2 standards.

She urged companies to incorporate ESG considerations into their overarching business strategies, emphasising the importance of listed companies aligning their ESG reporting with their business objectives, data management, and governance practices.

Awe, who spoke during a roundtable themed; ESG Activity Reporting and Sustainable Investing, at the Africa Social Impact Summit 2023, hosted by Sterling One Foundation and the United Nations Nigeria in Lagos, said businesses aiming to engage in ESG reporting must establish a clear ESG strategy that aligns with their business goals.

According to her, these companies should seek expert guidance and systematically monitor ESG-related data to facilitate accurate reporting.

She noted that the systemic approach is pivotal in encouraging prompt adoption of ESG reporting among NGX-listed firms.

Awe pointed out that companies that successfully integrate ESG reporting into their operational framework are considered responsible corporate citizens, as such companies are better equipped to mitigate operational risks, attract sustainable investors, and generate long-term value. 

Investors appeared to be realigning their portfolios ahead of the announcement of the half-year audited results and interim dividends of Nigeria’s leading banks.

Nigeria’s tier-1 banks, including United Bank for Africa (UBA), Guaranty Trust Holding Company, Zenith Bank, Access Holdings and Stanbic IBTC Holding Plc, have established a regular pattern of twice-a-year dividend payment, with interim dividend usually declared on first half reports.

Under the three-step final process for the release of dividend recommendations and audited reports, the board of directors meets to consider and approve the audited financial statements as well as dividend recommendation, then authorises the transmission of the signed reports to the primary regulator, in the case of financial institutions and other regulated entities and with the receipt of the approval of the primary regulator, transmits the dividend recommendation and audited report to the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) for the announcement to the public.

Already, the leading banks have confirmed that they might declare interim dividend for the first half of 2023. In separate regulatory filings, the banks indicated that their directors had met and deliberated on interim dividend payment.

The board of United Bank for Africa (UBA) indicated that “payment of an interim dividend” was part of the deliberations at their July 31, 2023 board meeting. Directors of the pan-African banking group said they had “considered and approved the 2023 half-year results and reports and payment of an interim dividend, subject to the approval of the Central Bank of Nigeria”.

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UBA stated that the investing public would be immediately notified upon approval of the 2023 audited half-year results and reports by the CBN.

Stanbic IBTC Holdings stated that it had “decided to audit the half-year financial results”, a process that usually precedes interim dividend payment. Stanbic IBTC Holdings is expected to release itgs results not later than August 29, 2023, after approval from the CBN.

The Board of Zenith Bank has said it had considered and approved the 2023 half-year results and financial statements as well as interim dividends at its July 20, 2023 meeting.

Directors of Guaranty Trust Holdings Company had also penultimate week met and approved the half-year results and payment of interim dividends.

 Most analysts expected the release of interim dividends by the major banks to moderate activities at the stock market in the period ahead.

Analysts at Cordros Securities said investors were anticipating interim dividends of tier-1 banks.

“We believe earnings from the Tier-1 banks in the coming weeks will support positive sentiments on the bourse, especially given the anticipation of interim dividends,” Cordros Securities stated.

Post-listing rules at the NGX require quoted companies to submit interim or unaudited quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  The deadline for the six-month period ended June 30, 2023 was thus July 30, 2023.

However, where a company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter. All the leading banks also undertake audit of their half-year accounts. The deadline for the submission of their accounts is thus August 29, 2023.

• Palm oil company to pay N6.80 dividend

Authorities at the Nigerian Exchange (NGX) have lifted suspension placed on Presco Plc after the palm oil company submitted all its outstanding financial statements.

The NGX Regulation (NGX Regco), a self regulatory organisation (SRO) that regulates activities at the NGX, at the weekend indicated that full trading activities have been restored on Presco, ending almost a month of suspension in trading on the agricultural company.

The NGX had suspended trading on Presco on July 11, 2023 after the agricultural company failed to submit its audited report and accounts for the year ended December 31, 2022. With the 2022 full-year report outstanding, the company was also unable to submit its quarterly results for the first half of 2023.

Extant rules at the stock market at the stock market require all quoted companies to submit their audited results not later than 90 days after the end of the year. Companies are also required to submit their quarterly interim results not later than 30 days after the end of the quarter.

“Presco Plc, whose securities were suspended on 11 July 2023, has now filed its outstanding financial accounts,” NGX stated.

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The board of Presco has recommended payment of final dividend per share of N6.80, raising total dividend for the year to N8.80 per share. The company had paid interim dividend of N2. The new dividend recommendation represents substantial increase on a dividend per share of N6.60 paid for the 2021 business year.

Key extracts of the audited report for 2022 showed that total turnover rose from N47.43 billion in 2021 to N81.03 billion in 2022. Gross profit increased from N31.75 billion to N49.97 billion. However, net profit after tax dropped from N19.32 billion to N13.03 billion.

The six-month report for the period ended June 30, 2023 showed that turnover rose to N48.07 billion in first half 2023 as against N41.71 billion in first half 2022. Gross profit inched up from N30.24 billion to N31.89 billion. Profit before tax increased from N17.82 billion to N20.89 billion while profit after tax improved from N13.47 billion in first half 2022 to N15.08 billion in first half 2023.

Nigerian equities showed resilience with a modest recovery in a global stock market marked largely by price depreciation. 

Average return at the Nigerian equities market closed weekend at 0.22 per cent, equivalent to net capital gain of N77 billion. The rally nudged average year-to-date return to 27.21 per cent.

The performance of Nigerian equities counteracted the negative trend at the global stock markets with slowdown across America, Europe, Asia and Middle East. In United States of America, the Dow Jones Industrial Average (DJIA) dropped by 0.7 per cent while the S & P 500 Index declined by 1.8 per cent. In United Kingdom, the FTSE 100 Index depreciated by 2.1 per cent.

STOXX Europe- a broad index that tracks European markets, dropped by 2.7 per cent. Japan’s Nikkei 225 Index dipped by 1.9 per cent. Taiwan’s benchmark fell by 2.6 per cent while Bahrain’s main index declined by 0.5 per cent. However, China’s SSE Index appreciated by 0.8 per cent.

Two major global indices tracking emerging and frontier markets also closed negative. The MSCI EM- which tracks emerging markets, dropped by 2.6 per cent while the MSCI FM- which tracks frontier markets, slipped by 0.4 per cent.

Against the background of recent profit-taking transactions, investors renewed bargain-hunting for Nigerian stocks with considerable rallies within the consumer goods, insurance and industrial goods stocks.

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The All Share Index (ASI)- the value-based index that tracks all share prices listed on the Nigerian Exchange (NGX) increased from the week’s opening index of 65,056.39 points to close weekend at 65,198.08 points.

Aggregate market value of all quoted equities at the NGX rose from the week’s opening value of N35.403 trillion to close at N35.480 trillion, an increase of N77 billion.

Most sectoral indices closed positive with the NGX Insurance Index leading with average return of 5.88 per cent. The NGX 30 Index, which tracks the 30 largest stocks at the market, rose by 0.15 per cent. The NGX Consumer Goods Index appreciated by 2.27 per cent. The NGX Industrial Goods Index posted a gain of 0.23 per cent.

The NGX Pension Index- which tracks stocks specially screened for pension funds’ investments, rose by 0.43 per cent while the NGX Lotus Islamic Index, which tracks ethical stocks that comply with Islamic rules, inched up by 0.02 per cent.

However, NGX Banking Index, the most active index, depreciated by 2.13 per cent as investors continued profit-taking trading on banking stocks. Banking stocks had outran other stocks in recent period and still carry average year-to-date return of 61.22 per cent. The NGX Oil and Gas Index, also dropped by 0.68 per cent, driven largely by profit-taking transactions. Oil and gas stocks are the best-performing stocks so far this year with average return of 99.22 per cent.

Investors swapped 2.575 billion shares worth N29.615 billion in 37,713 deals last week as against a total of 2.854 billion shares valued at N37.645 billion traded in 41,547 deals two weeks ago.

The financial services sector remained atop activity chart with 1.921 billion shares valued at N16.514 billion traded in 17,689 deals; thus contributing 74.60 per cent and 55.76 per cent to the total equity turnover volume and value respectively. The conglomerates sector placed second with 160.206 million shares worth N625.021 million in 1,811 deals while the oil and gas sector occupied the third position with a turnover of 152.046 million shares worth N1.332 billion in 2,403 deals.

The three most active stocks were AIICO Insurance Plc, FCMB Group Plc and Transnational Corporation Plc, which altogether accounted for 636.217 million shares worth N1.737 billion in 2,751 deals, contributing 24.71 per cent and 5.86 per cent to the total equity turnover volume and value respectively.

Also, a total of 27,073 units of exchange Traded Products (ETPs) valued at N1.335 million were traded last week in 90 deals compared with a total of 14,270 units valued at N3.252 million traded in 95 deals two weeks ago.

At the secondary bond market, a total of 143,414 bond units valued at N146.160 million were traded in 26 deals compared with a total of 29,766 units valued at N30.629 million swapped in 31 deals two weeks ago.

There were 42 gainers and 52 losers last week compared with 39 gainers and 54 losers in the previous week. SUNU Assurances Nigeria led the gainers with a gain of 55 per cent to close at 93 kobo.

Chellarams followed with a gain of 45.49 per cent to close at N3.39. Abbey Mortgage Bank rose by 32.73 per cent to close at N1.46. Dangote Sugar Refinery appreciated by 25 per cent to close at N37.50 per share. Skyway Aviation Handling Company rose by 20.82 per cent to N28.15 while GlaxoSmithKline Consumer Nigeria added 20.27 per cent to close at N8.90 per share.

 On the negative side, John Holt recorded the highest loss of 33.18 per cent to close at N1.47. Omatek Ventures followed with a drop of 30.61 per cent to close at 34 kobo. Sovereign Trust Insurance declined by 28.57 per cent to close at 50 kobo. Eterna declined by 26.74 per cent to close at N21.10 while Ikeja Hotel dropped by 18.52 per cent to close at N2.42 per share.

Most analysts expected the market to continue on the positive trend as investors await the interim dividends of major banks.

“We believe earnings from the Tier-1 banks in the coming weeks will support positive sentiments on the bourse, especially given the anticipation of interim dividends. 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 Securities stated at the weekend.

Analysts at Futureview Financial Services said they expected the market to be on the rebound in the days ahead.

Banks, fintechs and other organisations need to ensure their teams are prepared for a more technology-focused future, as innovation is gaining momentum in treasury management, Managing Director of Remita Payment Services Limited (RPSL), ‘Deremi Atanda has said.

He made the call as a panelist at the Treasury Leadership Forum organised by Standard Chartered Bank Nigeria Limited in Lagos.

He said advancements in automation and artificial intelligence are radically altering how work gets done and who does it, technology’s larger impact will be in complementing and augmenting human capabilities, not replacing them.

He proposed that organisations would benefit more from communicating their technology decisions to mitigate conflict.

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“There are unintended consequences of automation. In a situation where workers don’t know what to expect conflict can arise,” Deremi said. He advised, therefore, that “people along the value chain must know how automation will impact them and this also has to do with internal and external processes”.

He emphasised the need for collaboration among financial service providers and technology service providers, described it as the new reality and future of the industry.

The panel session themed: “Harnessing Technology for More Efficient Treasury Management” brought together treasury professionals, financial experts, regulators, and technology providers to discuss the latest trends and best practices in treasury management.

The move towards new technologies such as APIs, Artificial Intelligence (AI), machine learning or advanced analytics, big data, blockchain, and cloud computing to drive innovation is enabling rapid experimentation and new product development. However, the key challenge is knowing where to start.

Atanda said organisations must have an idea of their objectives to ensure that every project sets out to bring value to treasury management, and ultimately improve other areas of the business.

“Not all businesses will be on the same technology maturity level, hence your treasury requirements should be need-specific. Where there is a disparity in your internal capacity versus the supplier capacity, the automation will likely fail. Systems exist everywhere but they are not meant to be used the same way everywhere”.

“In the fast-paced business environment, there is the need to deal with the challenges of automating treasury management. Having a grand clarity of what the objectives are will help analyse the financial environment and manage conflicts,” he said.

According to ‘Deremi, the focus should be to implement technology into specific projects with targeted goals such as risk management, cost alleviation, or improved efficiency, and then integrate processes and platforms into a Treasury Management System (TMS).

Shareholders of Industrial and Medical Gases Nigeria (IMG Nigeria) Plc at the weekend approved the distribution of N208.12 million as cash dividends for the 2022 business year.

At the annual general meeting in Lagos, shareholders okayed payment of a dividend per share of 40 kobo for the 2022 business year amid commendations for the company, which had distributed bonus shares of one for five shares for the 2021 business year.

Key extracts of the audited report and accounts of IMG Nigeria for the year ended December 31, 2022 showed that profit before tax grew by 27.56 per cent to N704 million in 2022, as against N552 million in the corresponding period in 2021. Earnings per share stood at 90 kobo in 2022 compared with 89 kobo in the previous year. Net profit increased by 20.52 per cent to N448 million in 2022 from N372 million in 2021.

President, Noble Shareholders Association of Nigeria, Mathew Akinlade, described the company’s performance as outstanding noting that inflation, foreign exchange (forex) scarcity, insecurities and other challenges had impacted business in the review period.

“Gross revenue rose by 44 per cent. Although the cost of sales increased by 56 per cent , the company is generous to give a very good return of 40 kobo  dividend per share out of earning per share of 90 kobo, almost an increase of 50 per cent. It means the board and management care for the shareholders,” Akinlade said.

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Other shareholders also commended the company for continuing growth.

Shareholders however urged the board and management of the company to put in place strategy to cope with the new policy environment of the federal government.

Acting Chairman, Industrial and Medical Gases Nigeria (IMG Nigeria) Plc, Mr Aminu Ado, assured the shareholders that the company would embark on revenue generating capital expenditure to boost its earnings in 2023.

He noted that though last year was challenging, it was successful for the company as stakeholders joined hands to make sure the company recorded superior performance.

“In 2023, your Board will continue to support management’s drive on aggressive marketing of its products, improvement service delivery, reduction of overheads, developing new markets and introduction of new and innovative products. These activities, we believe, will back-up management’s drive to sustain and improve shareholder value in 2023, “Ado said.

Managing Director, Industrial and Medical Gases Nigeria (IMG Nigeria) Plc, Mr Ayodeji Oseni, said some of the key drivers of the company’s impressive performance were implementation of strategic business and other initiatives.

“We place a high premium on strategic business development initiatives and we are a customer-focused organisation. Our operations are based on integrated marketing and selling solutions in the marketplace.

The adoption of a deliberate cost reduction policy and focused improvements in our processes is to ensure that plant capacity utilization play a major role in our performance. We value our staff and constantly empower them in addition to ensuring continuous improvement in our internal efficiencies across the business,” Oseni said.

The company had in 2021 changed and rebranded its corporate identity following the emergence of a new core investor. It changed from BOC Gases Nigeria Plc to her new name and brand.

The Nigerian Exchange (NGX) has upgraded Fidelity Bank Plc from a low-priced stock to medium-priced stock following recent appreciation in the share price of the commercial bank.

In a regulatory circular at the weekend, the NGX stated that the reclassification was after a review of share price of Fidelity Bank over the most recent six months.

According to the NGX,  review of Fidelity Bank share price and trade activities over the most recent six-month period provided the basis for reclassifying the security from the low-priced stock group to the medium-priced stock group. The reclassification also necessitated the attendant change in the tick size change from 1.0 kobo to 5.0 kobo – in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015.

 “Fidelity Bank Plc traded above the N5.00 mark on February 20, 2023 and has remained above the N5 mark up until close of business on June 30, 2023. This indicates that Fidelity Bank has been trading above N5 for at least four) months in the last six months,” NGX stated.

The NGX classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price. A company must have traded for at least four out of the most recent six month period within a stock price group’s specified price band to be classified into the category.

The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

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The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

The reclassification to medium stock came as Fidelity Bank launched a hybrid capital raising plan aimed at sourcing some N90 billion in new equity funds from existing and new shareholders.

Fidelity Bank has indicated that it plans to issue 13.2 billion ordinary shares of 50 kobo each to new and existing investors to boost the bank’s capital base.

The board of directors has scheduled an extraordinary general meeting of shareholders for next month to approve the planned capital raising.

Shareholders are expected to increase the share capital of the bank from N16 billion or 32 billion shares to N22.6 billion or 45.2 billion shares through creation of  additional 13.2 billion ordinary shares of 50 kobo each

Under the plan, the bank is seeking to float a public offer of 10 billion shares and a rights issue of 3.2 billion shares. The rights issue will be allotted on the basis of one new share for every 10 shares held.

At the current market valuation,  market analysts estimated that the bank may be able to raise some N90 billion, although the final offer prices may be determined by the market situation and the extent of discount the bank prefers for its rights issue.

The bank explained that it needed the new capital to sustain its current strong growth trajectory in order to increase profitability, domestic and international expansion and enhancement of its digital capabilities.

“Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the bank remains agile, adaptable and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward looking institution,” the bank stated.

According to the bank, the new hybrid capital raising is aimed at ensuring that the bank can take advantage of emerging business opportunities and secure long term profitability and competitive advantage, while ensuring increased shareholder value.

The board of the bank urged shareholders to approve the resolutions for the hybrid capital raising at the forthcoming meeting.

• Investors position for interim dividends

• Early results show steady outlook

Several companies have scheduled board meetings to finalise the process for the submission of their half-year results ahead of weekend’s deadline for the submission of the interim earnings reports for the first six months of this year.

Corporate filings indicated that directors of most quoted companies are meeting over the next few days to consider the interim report and accounts for the half year ended June 30, 2023.

The Board of BUA Cement is meeting today. The boards of Thomas Wyatt Nigeria, Champion Breweries, May and Baker Nigeria, Nigerian Breweries and Neimeth International Pharmaceuticals among others are scheduled to meet on Thursday. The boards of Jaiz Bank, International Breweries, NASCON Allied Industries, Dangote Sugar Refinery and Okomu Oil Palm among others are meeting on Friday, July 28, 2023.

Ahead of the weekend deadline, the board of Veritas Kapital Assurance said it would be approving the half year results by circularisation in term for the  July 30, 2023 submission deadline. Directors of Veritas Kapital Assurance will subsequently meet on August 3, 2023 to further ratify their initial approval.

Post-listing rules at the Nigerian Exchange (NGX) require quoted companies to submit interim or quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  The deadline for the six-month period ended June 30, 2023 is thus Sunday, July 30, 2023. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

The Nation‘s check yesterday indicated that less than 10 per cent of companies expected to submit their reports have submitted. All the companies are required to meet the July 30, 2023 deadline or risk sanctions that range from N100,000 to N100 million and a “name-and-shame” tagging that flags non-compliant companies as below acceptable corporate governance standards.

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While the rules allow the Exchange to grant specific waiver to relevant companies or a general waiver of the deadline under some specific circumstances, a source in the know of the requirements said there was no issue that warrants consideration for a general waiver.

General waiver is usually given in the event of general disruption to industrial activities such as strike, national crises, many public holidays and other circumstances that in the judgement of the Exchange may significantly impact the 30-day timeline given to companies to prepare and submit the quarterly report.

Companies that delayed their financial statements and accounts also face threats of suspension and delisting in addition to the monetary fines. A review of the compliance report at the NGX yesterday showed that not less than seven companies were sanctioned for late submission of first quarter 2023 results.

Bargain-hunting at the NGX has picked up in recent days as investors realigned their portfolios ahead of the half-year results. A review of early filers yesterday showed a steady earnings outlook with most results showing considerable growths in earnings and profitability.

FBN Holdings Plc reported that net profit rose to N187.18 billion in first half 2023 as against N56.54 billion recorded in comparable period of 2022. Japaul Gold & Ventures stated that turnover rose from N112.46 million in first half 2022 to N1.86 billion in first half 2023. The company recovered from a net loss of N426.6 million in first half 2022 to a net profit of N587.05 million in first half 2023.

Multiverse Mining and Exploration also reported that turnover rose from N251.4 million to N283.7 million while net profit increased from N56.4 million to N80.9 million. United Capital’s half-year results showed gross earnings of N11.01 billion in first half 2023 as against N9.11 billion in first half 2022. Profit before tax rose from N5.24 billion to N5.54 billion while profit after tax increased from N4.44 billion in first half 2022 to N4.69 billion in first half of the year.

Several quoted companies usually declare interim dividends on their quarterly results. These include Zenith Bank, Guaranty Trust Holdings Company, United Bank for Africa, Access Holdings, Seplat Energy, Nigerian Breweries, Stanbic IBTC Holdings and Nestle Nigeria.

The board of Zenith Bank at the weekend indicated that it had approved payment of interim dividends for the first half of 2023 as the bank awaits the final approval of the Central Bank of Nigeria (CBN) to release its half-year results.     

•Shareholders okay new directors

Shareholders of Nigerian Exchange Group (NGX Group) Plc at the weekend approved the appointment of representatives of some of the major shareholders of the group unto the board of directors.

The appointment of major shareholders as directors further consolidated the full transition of the group into shareholders-owned entity, after its historic transition from a mutual, member-owned, not-for-profit organisation into a shareholders-owned, profit-making company limited by shares in 2021.    

At the annual general meeting in Lagos, shareholders approved resolutions appointing six directors including four non-executive directors; Mr Nonso Okpala, Mr Sehinde Adenagbe, Mr Ademola Babarinde and Mr Mohammed Garuba; as well as two independent non-executive directors-Mrs Mosun Belo – Olusoga and Mrs Fatima Wali- Abdurrahman.

Okpala is the Group Managing Director of VFD Group Plc, an indigenous investment and finance group that owns the single largest equity stake in NGX Group. VFD Group also owns major equity stake of about 6.6 per cent in the NASD OTC Securities Exchange, Nigeria’s only licensed over-the-counter platform, in addition to other strategic investments in key segments of the economy, especially in the financial services sector.

Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Umaru Kwairanga, welcomed the approval of the new board members, assuring that the board would continue to work with the management in achieving the goals of the group.

He commended the contributions of the outgoing board members to the growth and development of the group.

“Achieving an efficient capital mix and broadening our access to capital remain fundamental to our mission. The board will continue to assist the Management team in addressing long-term risks, strengthening the global NGX brand, and assessing progress toward our goal of being Africa’s preferred exchange hub,” Kwairanga said.

He outlined that the NGX Group demonstrated resilience in 2022, achieving a 10.3 per cent increase in gross earnings to N7.5 billion, despite a challenging economic environment. The group’s total revenue grew primarily due to a 6.8 per cent increase in revenue to N6.2 billion, and a 30.1 per cent increase in other income to N1.3 billion.

The growth in its revenue was further bolstered by a 51.2 per cent increase in treasury investment income and a nine per cent increase in transaction fees. However, its total expenses rose by 35.5 per cent to N8.8 billion, primarily due to interest costs on borrowed funds used for strategic acquisitions.

Group Chief Executive Officer, Nigerian Exchange Group (NGX Group) Plc, Mr. Oscar Onyema, said the performance of the group reflected its commitment towards driving growth in Nigeria and Africa’s capital markets.

He added that the group was proud to have generated multiple income streams that enabled it to overcome economic headwinds.

He expressed optimism on the future outlook of the group noting that the group remains committed to leveraging its strengths and expertise to drive growth and value creation in Nigeria and other financial markets Africa.

“NGX Group will continue supporting its operating subsidiaries, associates, and investee companies to deliver sustainable value creation for its shareholders. We will look to enhance our performance by continuously striving to optimize operations, increase revenue streams and expand our market reach.

“We are confident that these measures will enable us to build on the positive momentum we have achieved in recent years and drive growth in 2023 and beyond,” Onyema said.

After decades as a not-for-profit, member-owned mutual organisation, the then Nigerian Stock Exchange (NSE) had in March 2021 converted to a profit-making public limited liability company and changed its structure to a holding group structure.

With the conversion, otherwise known as demutualisation, came a new non-operating holding company, the NGX Group which shares were allotted to former members of the defunct NSE. The NGX Group now has three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange, which took on the listing and trading function of the NSE; NGX Regulation Limited (NGX RegCo), the independent regulation company which took on the self regulatory functions of the NSE; and NGX Real Estate Limited (NGX RELCO), the real estate company that took ownership of real estate and other assets, including the iconic Stock Exchange building in Lagos.

NGX Group also has significant shareholdings in the Central Securities Clearing System (CSCS) Plc, NASD OTC Securities Plc, FMDQ Securities Exchange and NG Clearing.