The Nation Newspaper

Category: Equities

  • We won’t prosecute multiple accounts holders, says SEC

    Nigerians have once again been enjoined not to entertain any fears of prosecution but take steps to regularise their multiple subscription accounts in order to obtain the benefits of their investments in the capital market.

    Acting Director General of the Securities and Exchange Commission, SEC, Mary Uduk stated this during an interview in Abuja weekend.

    Uduk said such investors should not entertain any fears of prosecution as the Commission is only interested in ensuring investors have the benefits of their investments.

    According to her, “They are not going to be prosecuted, we just want them to come forward and take back their shares and register them properly with CSCS so that the trading float in the market will increase.

    “The forbearance window for shareholders with multiple subscriptions has been extended by another year from the December 31, 2018 deadline previously communicated. Consequently, we enjoin those who have not come forward for the regularization of shares purchased with multiple identities, to do so.”

    Uduk also enjoined investors to take advantage of the on-going e-dividend registration in a bid to reduce the unclaimed dividends profile as well as increase liquidity in the capital market and the economy.

  • Providus Bank lists shares on NASD OTC Securities Exchange

    Providus Bank Plc has listed its shares on the NASD OTC Securities Exchange, opening up opportunity for investors to trade on the shares of the commercial bank.

    The shares of Providus Bank Plc were admitted to trade on the NASD OTC by way of security admission, after it was introduced by Vetiva Securities Limited.

    Founded in 2016, Providus Bank is licensed as a commercial bank by the Central Bank of Nigeria (CBN). The bank provides innovative financial services that offer customised business solutions and advanced products which meet business and personal needs.

    The management of Providus Bank stated that the bank’s competitive advantage in private, institutional, business and personal banking is driven by the philosophy to create support and value for institutions, agencies, Small and Medium Enterprises (SMEs) and High Networth Investors.

    According to the bank, its business development strategy also focuses on developing expertise and collaborating to improve the emerging non-oil sector of the Nigerian economy including agriculture, mining, hospitality, e-commerce, and art and entertainment.

    Inaugurated in July 2013, NASD OTC Securities Exchange is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the Nigerian Stock Exchange (NSE).

    Providus Bank joined many leading companies on the NASD OTC including world leaders like Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts are listed.

    Other companies listed on the NASD OTC included NIPCO Plc, Air Liquide Nigeria Plc Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company, Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc and Food Concepts Plc.

    Others included Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc, Vital Products Plc, Fumman Agric Products Industries Plc, Free Range Farm Plc, FAMAD Plc, AG Mortgage Bank, Trustbond Mortgage Bank Plc and Mass Telecom Innovation (MTI ) among others.

    Official tally at the weekend showed that there were 38 admitted companies at the NASD. There were also 244 stockbrokers and 133 participating institutions at the market.

    In an interview with The Nation, Managing Director, NASD OTC Securities Exchange Plc, Mr Bola Ajomale, said listing on the Exchange provides companies with many advantages.

    “If you list on NASD, you will get publicity that you exist first and foremost.  With the NASD portal, your shareholders are able to get a price quote, so they don’t need to go to the company secretary each time they need to know about the share prices and all. It is a channel by which you can send information to your shareholders. So people tend to invest in companies when they see there is liquidity in the shares and clearly they would be interested in putting more money to it,” Ajomale said.

    He noted that before the establishment of NASD, there was a lot of opacity in the market with a lot of people not knowing what was happening.

    He said the NASD provides companies with relatively easy way to list their shares as the rules on the NASD are lighter and less stringent to a large extent and easy for companies to comply with.

    “The requirements are fairly similar to listing as per the rules by Securities and Exchange Commission (SEC), so it is not a very heavy burden on the companies. Our focus is on the companies; our focus is on the shareholders and ensuring that the companies are responsible to their shareholders. So that’s where our focus is on and that’s why it makes sense for companies to come and list on the NASD,” Ajomale said.

    He assured that the NASD will continue to deepen its capacity in line with its commitment to be the driving force for the growth side of the economy.

    “We encourage growth in the country, because we are focused a lot on the growth side of the market rather than the big company side of the market,” Ajomale said.

    He said the NASD is committed to investors’ protection by providing a disciplined and orderly market noting that the NASD is governed by an extremely professional body that comprises about eight committees that cut across various functions.

    “When you want to have a good market, you must have a good governance process. So really the conflict of interest is extremely limited because shareholders are not going to come and say because I’m a shareholder, I want certain things. It doesn’t happen, we have rules. We are governed by rules, processes and procedures,” Ajomale said.

     

  • Union Bank lists N13.5b bond on FMDQ

    Union Bank of Nigeria (UBN) Plc has listed two bonds valued at N13.5 billion on the FMDQ OTC Securities Exchange.

    The commercial bank listed its N7.19 billion Series 1 and N6.31 billion Series 2 Senior Unsecured Fixed Rate Bonds on the FMDQ. The bonds were issued under Union Bank’s N100 billion debt issuance programme.

    Managing Director, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the bonds were major part of the bank’s corporate funding strategy.

    He noted that the listing of the bonds on FMDQ will ensure growth in liquidity and transparency within the fixed income market in Nigeria.

    Managing Director, FMDQ OTC Securities Exchange, Mr. Bola Onadele commended Union Bank for successfully raising the bonds noting that Nigerian debt capital market has continued to make essential strides towards sustainable development.

    He reiterated that FMDQ, through consistent collaboration with its stakeholders, shall continue to further deepen and effectively position the Nigerian debt capital market for growth, in support of the realisation of a globally competitive and vibrant economy.

    Associate Executive Director, Corporate Development, FMDQ OTC Securities Exchange, Ms. Kaodi Ugoji said FMDQ’s listings, quotations and noting service have been tailored to provide unique opportunity for companies and governments to raise the profiles of their issues and access a deep pool of funds to meet their long-term funding needs.

    She assured that FMDQ remains committed to continue to develop initiatives that will make the Nigerian debt capital market highly liquid, deep and well-developed.

     

  • Neimeth declares 10% bonus shares for shareholders

    The board of directors of Neimeth International Pharmaceuticals Plc has recommended distribution of bonus shares to shareholders as scrip dividend for the 2018 business year after the healthcare company saw a remarkable improvement in earnings.

    Neimeth will distribute about 172.65 million ordinary shares of 50 kobo each as bonus shares to shareholders on the basis of one bonus share for every 10 ordinary shares held as at the close of business on Thursday, January 17, 2019.

    The bonus shares will be credited to the investment accounts of the shareholders after approval of the bonus at the annual general meeting scheduled for February 6, 2019 in Lagos.

    Key extracts of the audited report and accounts of Neimeth for the year ended September 30, 2018 showed that sales rose by 48 per cent from N1.53 billion in 2017 to N2.27 billion in 2018. Cost of sales jumped by 83 per cent from N604.67 million to N1.11 billion. Gross profit thus increased from N929 million in 2017 to N1.16 billion in 2018.

    From a loss before tax of N404.92 million in 2017, Neimeth rebounded with a pre-tax profit of N202.48 million in 2018. After taxes, net loss of N411.48 million in 2017 was replaced with a net profit of N184.04 million in 2018. Earnings per share thus recovered from a loss of 24 kobo in 2017 to 11 kobo in 2018.

    Neimeth recently appointed the Group Executive for International Banking, FirstBank Nigeria Limited, Mrs. Bashirat Odunewu as an independent director in compliance with the statutory requirement for good corporate governance.

     

  • Vitafoam to support polyurethane SMEs

    Vitafoam Nigeria Plc has expressed its readiness to deploy its polyurethane business segment to create massive job opportunities for the youth.

    Vitafoam’s new job creation strategy is aimed at expanding the scope of the Small and Medium Enterprises (SMEs) in line with the economic diversification programme and growth agenda of the Federal Government.

    The company organised a one-day Entrepreneurship Seminar for Undergraduates with the theme: Polyurethane application for small and medium enterprises at the University of Lagos.

    Polyurethane are materials, such as woods, fibers, plastics, clothing, footwear and household and industrial products, which can serve as raw material for the manufacturing of furniture parts, cooler, boxes, mattresses, garage doors, water heaters, fridges and others.

    Economic and Statistics Department, American Chemistry Council, stated that polyurethane industry operates in nearly 1000 locations in the United States, directly generating $28. 6 billion output and 48,800 jobs. The top end- use markets for polyurethane consumption are building and construction, transportation, furniture and bedding industry.

    Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said economic transformation and diversification must be rooted in the development of strong SMEs.

    According to him, the core objective of the seminar was how to create sustainable jobs for the youths as a support for the Federal Government’s policy of youths empowerment.

    “Let people see why they do not need to line up and be seeking for employment. But, rather they can create jobs for themselves. They can be chief executives as soon as they finished their schooling and start their own businesses and help to develop this economy. Vitafoam has strong capacity to provide the required support structure for SMEs in the polyurethane industry,” Adeniyi said.

    He said there were a good number of expert, seasoned engineers and scientists in the company now that have been trained and prepared for the purpose of supporting the development of SMEs.

    “If someone starts a small scale polyurethane industry, we would be there to support in terms of knowledge base. We can guide you through so that the person can make a success from day one. In some cases, if one needs to buy some of those small equipment, we can make the contact and help to get them at affordable prices,” Adeniyi said.

    He listed some of the challenges facing SMEs in Nigeria as funding, lack of technical support, difficulty in access to raw materials and relatively high stock holding.

    In his presentation, the guest speaker, who runs the largest polyurethane company in Brazil and also a Non-Executive Director of Vitafoam, Mr. Gerson Silva spoke on “Discovery and Historical Progression of Polyurethane” and stated that a wide range of products and services are derivable from polyurethane, hence, the economic benefits of this technology can only continue to grow

    Earlier in his welcome address, the Vice Chancellor, University of Lagos, Prof. T. Ogundipe, represented by the Deputy Vice Chancellor, Academics and Research, Prof. Oluwole Familoni commended Vitafoam Group for its continuous support for the institution especially, during the university’s yearly conference.

    He urged the students to take the training very seriously and exploit its benefits.

    Expressing gratitude to Vitafoam for the entrepreneurial training seminar for undergraduates, a final year student of the department of Chemical Engineering, Faculty of Engineering, Olorunfemi Eniyadunmo, also commended Vitafoam for the initiative and urged other corporate organisations emulate Vitafoam.

     

  • Access Bank, E-Tranzact seek approval for N82b rights issues

    The boards of directors of Access Bank Plc and E-Tranzact International Plc have called for an extraordinary general meeting of their shareholders to approve new equity issue.

    Access Bank is seeking to raise N75 billion from existing shareholders through a rights issue while E-Tranzact is seeking to float a supplementary issue to raise N7 billion new equity funds.

    Regulatory filings at the Nigerian Stock Exchange (NSE) indicated that shareholders of Access Bank are scheduled to meet in Lagos on February 1, 2019 while shareholders of E-Tranzact will be meeting in Lagos on January 17, 2019.

    At the meeting, shareholders of Access Bank are expected to consider increase in the authorised share capital of the bank from N20 billion to N35 billion, thus increasing the shares from 38.0 billion ordinary shares of 50 Kobo each and 2.0 billion preference shares of 50 Kobo each to 68 billion ordinary shares of 50 kobo each and 2.0 billion preference shares of 50 kobo each through the creation of 30 billion ordinary shares of 50 kobo each.

    The meeting is expected to authorise the director of Access Bank to raise additional equity capital of up to a maximum of N75 billion by way of a rights issue in the ratio, on such terms and conditions and on such dates as may be determined by the board.

    If the rights issue is undertaken prior to the implementation date of the merger between Access Bank and Diamond Bank, the rights issue will also include a provision that allows Access Bank to issue shares to shareholders of Diamond Bank, under the same terms.

    Shareholders of E-Tranzact are expected to authorise their board to raise additional capital of up to N7 billion “through the issuance of any form of equity instrument(s), whether by way of public offering, private placement, rights issue, offer for subscription or other methods they deem fit, with or without preferential allotments, either locally or internationally, at such dates and on such terms and conditions as shall be determined by the directors”.

    The meeting is also expected to empower the directors to consider as an alternative or addition issuance of convertible or non-convertible loans. The meeting will also enable the company to issue undersubscribed shares to interested investors as well as absorb excess subscriptions.

    E-Tranzact shareholders are also expected to increase the company’s authorised share capital from N2.1 billion or 4.2 billion ordinary shares of 50 kobo each to N9.1 billion or 18.2 billion ordinary shares of 50 kobo each.

     

  • CWG gets new CEO as Agada bows out

    The board of directors of CWG Plc has appointed Mr. Adewale Adeyipo as the acting Managing Director of the company with effect from January 1, 2019.

    Adeyipo, currently Executive Director for sales and marketing at CWG will take over from Mr James Agada, who will be ending his three-year tenure as the chief executive of the company on December 31, 2018.

    Agada assumed the leadership of the company on January 1, 2016.  Before his appointment as chief executive, Agada served as the company’s Chief Technology Officer as well as Executive Director overseeing the company’s former software division, Expert Edge.

    The board of CWG commended Agada’s for service and leadership that led to many accomplishments. During his tenure, the company embarked on new initiatives designed to reposition it as the preferred platform services provider out of Africa. These initiatives include, the SmartMetering initiative, the ATM as a service initiative, BillsnPay, Unified Cooperative Platform (UCP) and Gaming Management platform.

    Agada had earlier handled the company’s charge into providing banking software via their Infosys partnership and their home grown FinEdgeCore-banking application.

    Adeyipo holds a BSc in Computer Science from University of Ilorin. He is an alumnus of Lagos Business School (LBS). He has also attended several management and leadership trainings and certifications from Lagos Business School; Business School, Netherlands; MIT and the London Business School.

    Agada holds both a first-class degree and a master’s degree in Electronic Engineering, with specialization in Digital Systems, from the University of Nigeria, Nsukka. He also holds an MBA from the International Graduate School of Management (IESE), Navara, Spain. He was pro term president, Lagos Chapter of the Nigeria Computer Society, and was conferred as one of the ‘Nigeria’s Top 50 Tech-Titans’ in 2016 by Technology Africa. He is also a Fellow of the Institute of Directors.

     

     

  • May & Baker Nigeria assures on

    May & Baker Nigeria Plc has assured shareholders that the company has the capacity to sustain its dividend payout despite the tough operating environment in the current business year.

    May & Baker Nigeria had in 2017 increased cash dividend by 233.3 per cent to 20 kobo per share compared with 6.0 kobo per share paid for the 2016 business year.

    At a media launch in Lagos, Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said while dividend payment is subject to the decision of the board and extant regulations, the company has the capacity to sustain its dividend payout.

    Citing the performance of the company in the past three quarters, Okafor assured that May & Baker Nigeria is on good footing to match its dividend payout, despite envisaged increase in outstanding shares due to the recent rights issue.

    May & Baker Nigeria had last month closed application for a rights issue of 980 million ordinary shares of 50 kobo each at N2.50 per share. The company had stated that it would pay dividend on the rights’ shares.

    “Despite all the constraints, our business has managed to thrive as shown by our results in the past three quarters. Our turnover has been growing despite the recent streamlining of our business into core healthcare business. We have also grown our profit. We think we have done well enough, considering our circumstances,” Okafor said.

    Key extracts of the nine-month report for the period ended September 30, 2018 showed that May & Baker Nigeria continued to witness impressive growth in its core Pharma business, with stronger margins, despite slight decline in revenue and present macroeconomic challenges.

    The report showed that gross profit rose by 10.6 per cent from N2.156 billion in third quarter 2017 to N2.385 billion in third quarter 2018. Operating profit also increased by 15.83 per cent from N770.71 million to N892.75 million. With finance cost dropping by 37.25 per cent from N479.60 million in third quarter 2017 to N300.94 million in third quarter 2018, profit before tax jumped by 89.19 per cent to N609.94 million as against N322.39 million recorded in comparable period of 2017.

    Profit after tax from continuing operations also leapt by 89.82 per cent from N218.505 million to N414.76 million. With the addition of net profit of N329.57 million from discontinued operation, total net comprehensive income grew by 240.65 per cent to N744.33 million in 2018 as against N218.505 million in 2017. Turnover dropped marginally by 5.63 per cent from N6.93 billion to N6.54 billion. The company had during the period divested and sold its noodles business as part of its strategic focus on its core healthcare business.

    Earnings per share, based on continuing operations, increased by 89.78 per cent from 22.30 kobo in 2017 to 42.32 kobo in 2018. On the basis of total net comprehensive income, earnings per share jumped by 240.58 per cent to 75.95 kobo in third quarter 2018 as against 22.30 kobo in third quarter 2017.

     

     

  • Lafarge Africa floats N89.2b rights issue amid decline

    Lafarge Africa Plc has opened acceptance list for a rights issue to raise N89.2 billion from existing shareholders as part of continuing efforts by the cement group to restructure its debt-laden balance sheet.

    Lafarge Africa is offering 7.43 billion ordinary shares of 50 kobo each at N12 per share. The rights have been pre-allotted on the basis of six new ordinary shares for every seven ordinary shares held as at the close of business on Tuesday, December 4, 2018.

    Acceptance list for the N89.2 billion rights issue opened on Monday, December 17, 2018 and will close on Wednesday, January 26, 2019.

    Lafarge Africa’s share price dropped by 10 kobo or 0.84 per cent to N11.85 per share at the Nigerian Stock Exchange (NSE) yesterday, 15 kobo below the rights issue price. The lower market price raises concerns about the attractiveness of the rights issue and the ability of renouncing shareholders to trade their rights on the secondary market.

    The latest capital raising is Lafarge Africa’s second issue in 14 months. Lafarge Africa had sold its November 2017’s rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.

    The new rights issue is also be structured like the November 2017 rights issue, including a convertible deal that allows the majority core investor- LafargeHolcim, to convert its debts to equities.

    At the extraordinary general meeting that approved the new capital raising, shareholders had authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

    Key extracts of the interim report and accounts of Lafarge Africa for the nine-month period ended September 30, 2018 showed that sales rose from N223.67 billion in third quarter 2017 to N234.30 billion in third quarter 2018. With cost of sales rising from N165.76 billion to N178.21 billion, the cement company however ended with a pre-tax loss of N14.36 billion in 2018 as against pre-tax profit of N1.09 billion in comparable period of 2017. After tax gain of N4.04 billion, net loss after tax stood at N10.37 billion in third quarter 2018 compared with net profit after tax of N937.91 million in comparable period of 2017. With these, loss per share for the nine-month period stood at N1.20 in 2018 as against positive earnings per share of 10 kobo in corresponding period of 2017.

  • NSE launches new board for REITS, closed-end funds

    The Nigerian Stock Exchange (NSE) will today move Real Estate Investment Trusts (REITs) and closed-end funds listed on it to a new board in a final stage of an extensive restructuring aimed at boosting the asset classes.

    In a circular at the weekend, the NSE stated that the migration of these asset classes was aimed at promoting visibility and liquidity of listed REITs and closed-end funds (CEFs).

    The Exchange reiterated its commitment to partnering with issuers, investors and other capital market stakeholders, in providing a multi-asset platform that caters to different classes of investors.

    The restructuring that started in April 2017 included incorporation of specific rules relating to REITs and closed-end funds into the Rulebook of the Exchange as well as submission of quarterly financials and audited full year financial statements to the Exchange through the NSE X-Issuer Portal by REITs and closed-end funds.

    The Exchange had noted that the financials being submitted by REITS and closed-end funds will be accessible to the public through the NSE’s website and other NSE platforms.

    Besides, REITs and closed-end funds listed on the Exchange would be required to submit relevant key performance metrics weekly to the NSE while the Fund Managers will also be required to post the information on their website.

    “The changes will also make it easier for existing and potential investors to access information required to make investment decisions thereby contributing to the growth of these products in our market,” the Exchange stated.

    The Exchange urged fund managers to the REITs and closed-end funds to embark on consistent marketing campaign on the changes and provide detailed information to sensitise and educate investors about this asset class, as a viable alternative investment vehicle.