United States and Nigeria have committed to collaborative initiatives that would enhance inflows of foreign investments into Nigeria and provide increased access to Nigerian companies to trade with their foreign counterparts and international investors.

The two countries will leverage the opportunity provided by the Nigerian stock market to boost investments and trade between the countries.

United States Consul-General, Mr Will Stevens, said the US was committed to facilitating its strategic interests of increasing US investments to Nigeria; Nigerian investments to the US; and trade between the US and Nigeria.

Speaking during a visit to the Nigerian Exchange (NGX), Stevens said the consulate goal was to work with the Exchange to create transparency and accessibility for Nigerian companies to international investors.

“I am looking forward to doing everything I can to increase trade between our nations, US investments in Nigeria, and Nigerian investments in the US,” Stevens said.

Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola acknowledged the longstanding relationship between the US Mission and NGX over the years as well as the critical role the Consulate plays in driving economic cooperation.

He assured that the NGX remains committed to deepening its relationship with the Consulate with a view to enhancing investment flows.

“The US Consulate plays a commendable role in driving sustainable investments in Nigeria’s technology, agriculture and energy sectors via strategic partnerships with American corporates and investors that have significantly aided Nigeria’s economic growth and further entrenches the importance of sustaining our cooperation.

“NGX, through our role as a frontrunner for sustainable finance and business practices for the Nigerian capital market, will continue to champion initiatives that stir the ecosystem along the path to achieve economic recovery and inclusive development,” Popoola stated.

According to him, the NGX is keen on exploring avenues through which it could be the point of contact between Nigerian investors looking to access the US market and US institutional and retail investors wanting to approach the domestic market.

He assured that the NGX is well positioned to leverage its partnerships for private sector advocacy, building capacity of market players, technological progress and digital transformation of markets.

Shareholders have called for concerted efforts to address judicial processes and laws adversely impacting the Nigerian capital market.

They noted that the capital market plays important roles in the national economic development and its efficiency will impact the overall performance of the economy.

Speaking under the aegis of  Independent Shareholders Association of Nigeria (ISAN), they said there was urgent need to proffer solutions  to several policies and laws that are stifling the activities of the capital market thereby deterring investors.

National Coordinator,  ISAN, Prince Anthony Omojola said iSAN has played  major roles in the past with regard to protection of the interest of investors’,  reiteratting the association’s commitment to investors protection.

.As a watchdog of publicly quoted companies, we have charged ourselves with the responsibility of ensuring that all stakeholders adhere to the rules in accordance with best corporate practices with diligence.

“In the course of playing our own part in the scheme of things, we have had to agree and disagree with successive governments, their regulatory agencies, company boards and their managers, particularly those listed on the Nigerian Exchange Limited (NGX). We have organized demonstrations and even gone to court to seek redress and correct legal interpretation on some issues we consider arbitrary by regulators. It is of credit to ISAN that we have fought so many battles and won.” Omojola said.

He noted that the performance of the market is largely based on government policies.

According to him, lengthy and frustrating judicial processes are impeding smooth market operations.

He noted that the current policies regulating the macro-economic environment are not favorable to the operation and growth of the economy and that ISAN seeks to interface with the government for the redress of such policies.

“We know the way our capital market is structured; it operates under certain policies of the government. When the policies are good, the market comes out good, but when the policies are bad, the market suffers,” Omojola said. It also aims to address the issue of intimidation of some companies and shareholders by regulatory bodies.

He said the association will beam searchlight on the regulatory environment at its forthcoming triennial delegates’ conference billed for next week in Lagos.

He noted that with the Governor of Lagos State, Mr. Babajide Sanwa-Olu as the chief host, the event promises to involve top government and private sector officials including delegates of regulatory agencies such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), the Nigerian Exchange Group (NGX) and delegates of ISAN from zones all over Nigeria.

General Secretary ISAN, Chibuzor Emmanuel said the association has been at the forefront of advocacy for the protection of interest of investors.

‘In the area of unclaimed dividend, which stands at N177 billion as at 2021, ISAN would continue to engage its members and the public in sensitization on how the capital market really works and how they can claim their dividends.

”What we are doing presently is continuous engagement to encourage our members to interface with the registrars and make sure they collect their dividends. We sent the list of unclaimed dividend to all our zonal branches to identify investors who are yet to claim their dividends so that they can do so,” Emmanuel said.

He enjoined all stakeholders’ to take active part at delegates’ conference and play their respective roles in improving the growth of the economy.

The Securities and Exchange Commission (SEC) has expanded the assets custodial services segment of the market, providing foreign and domestic investors with expanded opportunity for safety of their financial assets.

SEC increased the number of nominee service providers with the issuance of global custody license to FSDH Merchant Bank.

A nominee vehicle is an important part of the capital market infrastructure as it provides post-trading safekeeping for clients’ assets.

With the global custody licence, FSDH Merchant Bank through its FSDH Nominees, will provide premium investor services solution provider for asset managers, institutional investors, banks, insurance companies, brokers, private equity firms, non-governmental organisations (NGOs), foreign portfolio investors and high networth investors (HNIs).

The new nominee vehicle is also empowered to provide fund services, administration for SEC-regulated collective investment schemes, portfolio valuation, collateral management, escrow agency services, securities lending, cash management and compliance reporting, among others.

FSDH said the launch of the nominee service was part of the group’s plan to meet investors’ needs by covering their end-to-end transactions, further showcasing FSDH’s years of expertise and experience within the financial services sector.

Managing Director, FSDH Merchant Bank; Bukola Smith said the custody services offering  will further enhance safekeeping of financial assets in Nigeria.

According to her, the new nominee vehicle will use cutting-edge technology to provide enhanced service delivery and assets servicing while proffering sophisticated solutions to customer’s banking and financial services needs.

“Our competitive pricing model and global reach will also enable us to act as sub-custodians to global custodian banks and engage directly with foreign portfolio investors and fund managers in the market and those looking to come into the country.

“With this licence, our clients will benefit from our focus on excellent pre- and post-trading services. We can offer our local and international clients superior end-to-end service experience by supporting them at every stage of the investment cycle, leveraging the capabilities within the FSDH Group and our excellent track record in the areas of investment banking, corporate banking, asset management, and wealth management,” Smith said.

She said FSDH would continue to deepen its business lines, strengthen its offerings and deliver its promise to play a key role in the success journey of our clients.

‘’As we offer a one-stop array of financial services to our customers; we are now able to deliver efficient end-to-end of their transaction life cycle and we offer years of experience and expertise within the money market, capital market, corporate and transaction banking space to do so excellently,’’ Smith said.

She added that this new phase provides an additional option of non-pension custody services through which our bank can provide higher standards of service through experienced personnel across FSDH Group.

Divisional Head, Global Markets & Prestige Banking, FSDH Merchant Bank, Hakeem Muhammed said the with the launch of the  custodial service, the group will ensure an efficient custody management process and safekeeping of assets with the highest assurances of safety, efficiency, use of technology, superior service, lower turn-around-time and a direct settlement process with Euroclear Bank which ensures timely settlement.’

He added that the addition of custody services to the group’s offerings would enable it to continue to delight clients by delivering value-added services that will significantly impact the performance and profitability of existing and future clients.

The Chartered Institute of Bankers of Nigeria (CIBN) has reiterated its resolve to strengthen banking and finance education  through the injection of professionalism into the teaching and learning of the course.

President, CIBN, Dr. Ken Opara, who spoke during the inauguration of CIBN Bankers Hall at the Federal Polytechnic, Nasarawa, said the institute is committed to ensuring ethics and professionalism among practitioners.

“We are resolutely committed to enhancing the employability and career growth of our members at all levels It is imperative to also inform our teeming students that the institute is also focusing on the welfare of GENZs, Alpha and Beta Generations as they are the future of our sustainable human capacity in the industry especially in this digital age,” Opara said.

Opara said the hallwas part of CIBN’s legacy projects being undertaken across the six geo-political zones of the country.

He said the Federal Polytechnic Nasarawa was chosen based on its sterling record as the best-performing tertiary institution in the CIBN linkage programme in the North central zone.

The smart, ultramodern edifice which serves as a lecture theatre, demonstration class and multipurpose centre was commissioned by the Emir of Nasarawa, who was ably represented by the Ubangarin Nasarawa, Dr. Dalhatu Jibril Usman

While performing the commissioning ceremony, the Emir expressed his profound appreciation at the thoughtful gesture of the CIBN leadership to build legacy projects across the nation aimed at boosting educational enterprise.

He described the project as a well-thought-of legacy because it would stand the test of time in adding value to education in the polytechnic.

Opara said it was pleasure to note that the linkage collaboration which was consummated between the institute and the Federal Polytechnic, Nasarawa on November 27, 2012, during the tenure of then Rector, Dr. Pius Otaru Salami, who was a former member of the CIBN Governing Council is waxing stronger.

This Nasarawa project was the fifth legacy building to be commissioned by the institute this year, in five geo-political zones. The previously commissioned legacy projects were endowed at The Polytechnic Ibadan, South-West Zone; Abubakar Tafawa Balewa University (ATBU), Bauchi, North-East Zone; Federal Polytechnic, Nekede, South-East Zone and Rivers State University, South-South Zone. Last but not least is Kano State Polytechnic, North-West Zone, which is the last of the first phase of completion.

Opara called on corporate organizations and well-meaning Nigerians to join forces with the government to rebuild and revamp the educational system in Nigeria, as education remains the bedrock of any meaningful development.

He lauded the Rector, Dr. Abdullahi Ahmed, for his pragmatic and purposeful leadership in the institution and his uncommon dedication to the linkage programme with the CIBN which has produced an ultra-modern Bankers Hall that is tastefully furnished and equipped.

In his speech at the event, the Rector of the Polytechnic, Dr. (ESV) Abdullahi Alhassan Ahmed lauded the Chartered Institute of Bankers of Nigeria for its kind gesture in building a legacy project at the polytechnic.

Ahmed described the CIBN as an organization that has shown uncommon commitment to the advancement of the banking and finance education in Nigeria, adding that the donation of the Bankers Hall is a gesture that is noble because it is goaded towards uplifting educational standards.

He pledged the commitment of the polytechnic towards the maintenance of the edifice for the sake of posterity.

Small and medium enterprises (SMEs) have secured additional access to funding with the agreement by a consortium of international development finance institutions and local and global financial companies to deploy N3.8 billion in growth-driven credit facilities to Nigerian businesses.

The new N3.8 billion international credit facility was premised on the major role that businesses play in most economies, particularly in developing countries. The survival and growth of small-scale businesses is generally regarded as an important contributor to job creation and economic development in emerging markets like Nigeria.

However, access to finance has been a key constraint to business growth as it has been particularly difficult for SMEs and women-led businesses to access funding without difficulties in Nigeria.

The N3.8 billion credit facility is being implemented under a partnership between African Guarantee Fund (AGF) and FSDH Merchant Bank (FSDH); with the aim of bridging gap in access to credit. AGF, through its subsidiary AGF West Africa, signed agreement with FSDH Merchant Bank to disburse the N3.8 billion funding to SMEs.

AGF was founded by the government of Denmark through the Danish International Development Agency (DANIDA), the government of Spain through the Spanish Agency for International Cooperation and Development (AECID) and the African Development Bank (AfDB). Other shareholders include French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU) and KfW Development Bank (KfW).

AGF’s objective is to promote economic development, increase employment and reduce poverty in Africa by providing financial institutions with guarantee products and capacity development assistance specifically intended to support SMEs in Africa. AGF’s guarantee products are being utilised in 40 African countries.

Managing Director, FSDH Merchant Bank, Bukola Smith said the new credit facility would further facilitate the bank’s lending to growing sectors of the Nigerian economy like agriculture, healthcare, technology and the female economy.

According to her, the N3.8 billion transaction would open more opportunities to support the growth of the economy on a considerable scale while continuing working with all relevant stakeholders to maintain the momentum.

Read Also: Loans to SMEs, women access to finance decline, says IMF

She noted that the agreement with AGF  will support the bank’s commitment to assisting women-owned businesses and SMEs in closing the funding gap.

“The N3.8 billion credit line will strengthen our short-term business loans and will be deployed directly to mid-sized companies and through SME aggregators, business incubators, investment acceleration programmes for businesses who are willing to scale and our women in business initiative,” Smith said.

FSDH Merchant Bank had in November 2021 announced a N2 billion funding for women led businesses in partnership with Development Bank of Nigeria (DBN).

Smith said the agreement with AGF further strengthens the resolve to contribute to the economic growth of businesses and entry into new markets.

Managing Director, African Guarantee Fund West Africa, Bendjin Kpeglo said that the partnership would serve the common interests of both AGF and FSDH Merchant Bank to strengthen, promote, and develop cooperation in creating financial inclusion and support systems for entrepreneurs.

“The facility is centered around transforming the SME sector, while also particularly supporting women-led businesses who access less financing due to structural inequalities and discrimination. Through the AFAWA Guarantee for Growth program, we will boost the already existing products that FSDH Merchant Bank avails to women entrepreneurs.

“The guarantee will also foster sustainable development by unlocking financing for businesses focused on clean energy, cleaner production, green services, climate-smart agriculture and natural resource management,” Kpeglo said.

Kpeglo pointed out that as more stakeholders take steps to close the funding gap in Nigeria, there is an undeniable air of optimism for the future of SMEs adding that FSDH Merchant Bank and AGF will continue to operate at the intersection of high-growth businesses and institutional funding, connecting more businesses to funding opportunities, thereby enabling them to propel their businesses and spur sustainable growth in the economy.

 

Emerging technological firms will soon have opportunity to raise funds and list their shares through the formal securities exchange.

Capital market stakeholders are fine-tuning a specialised listing board that will enable tech firms to access funding and list their shares on the Nigerian Exchange (NGX).

Chief executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola said the new “specialised technology board” for tech firms is aimed at encouraging the listing of companies in the technology space and thus provide them with increased transparency and visibility on foreign investment activities in tech companies and local tech startups.

He said the tech board is being developed by the NGX in conjunction with other major stakeholders such as Securities and Exchange Commission (SEC), Central Bank of Nigeria ( CBN), Central Securities Clearing Systems (CSCS) and Pension Fund Operations Association of Nigeria (PenOp).

The African tech sector is fast growing with startups raising over $4 billion between 2015 and 2021 with combined valuations surpassing $20 billion according to a Disrupt Africa report.

To promote the idea of inclusive access of tech firms to the capital market, the NGX organised a webinar with the theme “Enabling the Next Wave of Growth for Technology Companies in Africa”,

Chairman, Nigerian Exchange (NGX), Abubakar Mahmoud,  who was  represented by NGX board member, Erelu Angela Adebayo, said that Nigeria is home to several unicorns like Flutterwave, Andela, Jumia and Opay which have valuations surpassing $1 billion.

“As a sustainable exchange championing Africa’s growth, NGX is positioned to support the growth of the next wave of technology companies. It is stimulating the capital market, providing a tailored platform for tech companies in Nigeria and wider Africa to access growth capital whilst providing exit opportunities for all investors.

“The next wave of growth for home-bred technology companies needs to be anchored on sustainability, agility, collaboration and digital innovation and these are elements that NGX represents,” Mahmoud said.

Read Also: Nigerian stocks lose N858b in biggest daily loss

Director General, Securities Exchange Commission (SEC), Mr Lamido Yuguda, who was represented by Dayo Obisan, Executive Commissioner, Operations, SEC, noted that with the several developments recorded in the technology space, Africa remains a continent with the highest potential when it comes to tech and innovations.

He said Africa’s ability to determine its future digitally must be accelerated by strengthening its technological capabilities.

According to him, Africa has the potential to grow into a technological giant with the right enablement and SEC will support laudable initiatives aimed at improving on the capacity of the market to develop a robust ecosystem for the Nigerian capital market.

Deputy Governor, Financial Systems Stability Directorate, Central Bank of Nigeria (CBN), Mrs Aisha Ahmad pointed out that tech had grown from an enabler of business to a fully-fledged sector as some of the largest companies in the world like Meta and Google.

“Africa is a $2.7 trillion economy and for this growth to translate into broader economic impacts, we need more local investor participation and I’m particularly excited about the NGX’s Technology Board plan which will help grow the listings of Nigerian and Africa tech companies. It will aid price discovery of tech industry valuations, and channel capital to tech and other sectors,” Ahmad said.

Popoola said the webinar was consistent with NGX’s bid to strengthen the diversity of the capital market by redefining it as an attractive destination for technology companies, adding that the comprehensive discussions at the sessions would help to drive cogent actions to develop African technology.

Panellists at webinar agreed that the proposed launch of NGX Technology Board is timely as it addresses challenges startups face with funding and capital formation during their developmental stage. Additionally, they noted that having major stakeholders like NGX, SEC and CBN champion the board would attract foreign investor participation, especially in terms of liquidity.

Panellists also highlighted policies and the right standards as key factors to creating an enabling environment for tech listings and Investor protection.

They noted that regulators should be concerned about the companies listed, the governance structure, evaluations, returns and their positive impact on Nigeria’s economy, such as the introduction of new founders to the market and the creation of employment for Nigerians.

Several investors have lost more than one-third of their investments in quoted equities this year in spite of the positive overall market position.

A nine-month analysis of share price movements yesterday indicated that despite overall average return of 14.77 per cent during the period, several investors had lost between a quarter and half of their investment values in a negative undercurrent that cut across sectors and stocks groups.

The top 10 losers for the nine-month period ended September 30, 2022 included Guaranty Trust Holding Company, Honeywell Flour Mills, Livestock Feeds, Berger Paints Nigeria and Red Star Express.

Other top losers included Royal Exchange, University Press, Caverton Group, Coronation Insurance and Global Spectrum Energy Services Company.

Livestock Feeds was the worst-performing stock at the stock market with a drop of 52.6 per cent. It was followed by Royal Exchange with 51 per cent. University Press placed third with a loss of 44.6 per cent. Caverton dropped by 41.3 per cent while Coronation Insurance lost 37.5 per cent.

Also, Global Spectrum depreciated by 34.4 per cent. Red Star Express slumped by 33.3 per cent. Honeywell Flour Mills lost 33.2 per cent. Guaranty Trust Holding Company- the only banking stock among the top losers, depreciated by 31.7 per cent while Berger Paints closed the rank with a drop of 30.4 per cent to close at N5.95 per share.

Overall market analysis showed that investors lost about N1.50 trillion in the third quarter alone as escalated global energy and commodity crises triggered massive portfolio realignments across markets.

Benchmark indices at the Nigerian stock market indicated average negative return of -5.39 per cent for the three-month period ended September 2022,  equivalent to net capital depreciation of N1.50 trillion for the three-month period.

The third-quarter performance underlined sustained decline in recent months with investors losing an average of 1.63 per cent or N430 billion in September alone. The market had lost about N28.3 billion in August and suffered its highest loss within the quarter at the onset with a N772 billion loss in July.

Read Also: Honeywell Group, Flour Mills highlight benefits of merger

The overall year-to-date return however remained positive with average year-to-date return of 14.77 per cent, equivalent to net capital gain of about N3.3 trillion for the nine-month period.

The All Share Index (ASI)- the value-based index that tracks all share prices at the Nigerian Exchange (NGX) closed weekend at 49,024.16 points as against 51,817.59 points recorded at the beginning of the quarter.

Aggregate market value of all quoted equities dropped from third quarter’s opening value of N27.935 trillion to close weekend at N26.451 trillion, a decrease of about N1.50 trillion. The almost perfect correlation between market capitalisation and ASI underlined that the depreciation was mainly due to decline in share prices rather than primary market changes such as reduction in number of shares.

Segmental analysis showed no safe haven for investors during the period. All sectoral indices closed negative, driven by selloffs within the large and mid-cap stocks. The NGX 30 Index- which tracks the 30 largest stocks at the NGX, posted average loss of 7.45 per cent in the third quarter. The NGX Banking Index- the most active index, declined by 4.67 per cent.

Also, the NGX Insurance Index, the most populous index, dropped by 5.46 per cent during the period. The NGX Industrial Goods Index recorded the highest decline of 17.61 per cent within the three-month period. The NGX Oil and Gas Index depreciated by 6.80 per cent in third quarter 2022. The NGX Consumer Goods Index declined by 6.30 per cent. The NGX Pension Index, which tracks stocks in line with the stringent pension funds’ investment guidelines, depreciated by 9.00 per cent while the NGX Lotus Islamic Index- which tracks equities that comply with the more stringent Islamic investment rules, declined by 6.51 per cent in the third quarter.

Analysts attributed the market performance to the worsening domestic and global economic risks characterised by rising inflation and higher interest rates.

Most analysts remained cautious of the outlook in the months ahead citing worsening economic fundamentals and political risks.

NIPCO Plc, the integrated downstream company that acquired former Mobil Oil Nigeria Plc, is the new majority shareholder in Sheraton Abuja Hotel.

Additional details on the recent acquisition of the Sheraton Abuja Hotel indicated that NIPCO is the sole owner of 22 Hospitality Limited, which acquired 66.13 per cent majority equity stake in Capital Hotels Plc, the holding company for Sheraton Abuja Hotel.

Group Executive Director, NIPCO Plc, Alhaji Aminu Abdulkadir, who confirmed the transaction, said the acquisition was part of concerted efforts to diversify into the nation’s hospitality industry.

He said NIPCO would work to restore the hotel to its former glory and to reposition it as the first-choice luxury hotel in Abuja.

According to him, the new investors are keen to turn around the fortunes of the hotel through the injection of substantial new capital under certain preconditions.

He added that as part of the new investors’ commitment to manpower development in the hospitality industry, NIPCO is keen to establish a ‘hospitality academy’ in Nigeria in collaboration with the Federal Government to train the Nigerian youths in the various hospitality skill sets.

He pointed out that the academy was borne out of the current global shortage of trained and experienced hospitality manpower noting that statistics show that there are currently more than one million job vacancies in housekeeping, waiters, chefs, security, information technology and maintenance.

He explained that the hospitality academy will not only train Nigerians for local employment but will also equip them with the requisite expertise to seek overseas placements to fill the large volume of vacancies in other parts of the world, thereby becoming a veritable recourse in the quest to abate  unemployment in Nigeria.

Read Also: NIPCO Gas, Femadec Express to deepen gas revolution gains

The Nation had reported that 22 Hospitality Ltd acquired 66.13 per cent controlling equity stake in Capital Hotels, which owns Abuja Sheraton Hotel and a related company to Ikeja Hotel Plc. 22 Hospitality Limited acquired 1.61 billion ordinary shares of 50 kobo each or 51 per cent of the equity share capital of the company through private placement.

It also acquired through offer for sale 456.64 million and 21.56 million ordinary shares of 50 kobo each, representing 14.45 per cent and 0.68 per cent of the paid up share capital of the company, from Hans Gremlin Nigeria Limited and Associated Ventures International Limited respectively.

The private placement and offer for sale deals gave 22 Hospitality Limited a total of 2.09 billion ordinary shares of 50 kobo each, representing 66.13 per cent of the paid up share capital of Capital Hotels.

Capital Hotels is an associated company of Ikeja Hotel, another publicly quoted company that controls a chain of hotels directly and through other subsidiaries and affiliates including Tourist Company of Nigeria (TCN) Plc and Capital Hotels Plc. Ikeja Hotel owns Sheraton Hotel, Ikeja, Lagos. TCN owns Federal Palace Hotel, Lagos while Capital Hotels owns Abuja Sheraton Hotel. The Ibru family owns the single largest individual shareholding in Ikeja Hotel.

Following the emergence of 22 Hospitality Limited as the new core investor, the board of directors of Capital Hotels resigned and the new core investor took over. Directors that resigned their appointments included former chairman, Chief Anthony Idigbe,Dr Alexander Thomopulos,Mrs Fadeke Olugbemi, Mrs Helen Da-Souza and Mr Akpofure Ibru.

The new board of directors included Mr Ramesh Kansagra as chairman, Rishi Kansagra as a non-executive director;  Ravi Bachu  as executive director;  Aminu Abdulkadir as non-executive director; Chief Paul Obi as non-executive director and Pascal Demarchi as executive director. Also, Mr. Chuma Anosike, Alhaji Abatcha Bulama and Mr. Toke Alex-Ibru were appointed as independent non-executive directors.

Capital Hotels was incorporated in January 1981 as a private limited liability company and became a public liability company in May 1986. Its hotel, Sheraton Abuja Hotel commenced business in January 1990.

The 15-day extended period for trading and subscription to the ongoing rights issue by Neimeth International Pharmaceuticals Plc closes tomorrow.

Neimeth is raising about N3.68 billion through rights issue of 2.374 billion ordinary shares of 50 kobo each at N1.55 per share.  The rights were pre-allotted to existing shareholders on the basis of five new ordinary shares of 50 kobo each for every four ordinary shares held as at the close of business on Friday, April 22, 2022.

The rights issue had opened on Wednesday, August 3, and was scheduled to close on Thursday, August 25. But it was later extended to September 15.

Besides direct subscription to the offer, shareholders of Neimeth also have extended period to trade on their fully or partially renounced shares on the floor of the Nigerian Exchange (NGX) until September 15.

Chairman, Neimeth International Pharmaceuticals Plc, Dr. Ambrosie Orjiako, said the company was raising funds two key reasons of constructing a world-class factory compliant to World Health Organisation (WHO) Standards of Good Manufacturing Practice (cGMP) at Amawbia in  Anambra State and to boost its working capital.

He said the projects would not only sustain the upbeat performance of the company but will give it a quantum leap into the league of leading global health care commodities producers.

Read Also; NGX extends trading on Neimeth’s N3.7b rights issue 

He noted that the fortune of Neimeth had taken an upward turn since 2018, when it returned to profitability after nearly a decade of predominantly losses. From a loss of N404.9 million in 2017 the company made profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million last year.

Orjiako assured that the company is working to ensure that the growth trajectory is sustained.

Managing Director, Neimeth International Pharmaceuticals Plc, Matthew Azoji, said the  capital market is the most viable and cheaper option to source long term  funds because of the high cost of funds through other sources.

“We cannot finance such long term project as the new plant in  Amawbia with short term funds from banks. That will not be expedient and cost effective,” Azoji said.

He recalled that in the immediate past year, shareholders had approved a two-pronged expansion plan, including the construction of a new plant in Anambra State and a facility upgrade of the Oregun plant.

He explained that the Oregun factory upgrade is already close to completion with funds from the Bank of Industry (BOI) and internal capital noting that on completion, the Oregun plant alone will add additional 300 per cent to the company’s production capacity.

Azoji expressed optimism that shareholders will take their rights and the offer will be fully subscribed.

He outlined that Neimeth has emerged from an era of constant losses to a period of steady growth in both turnover and profitability.

According to him, in the past three years the company has built a regime of growth and profitability as it recorded growth in both turnover and profit in 2019 and 2020 after 10 years of low performance.

Following the same growth trajectory, the share price of Neimeth increased 343 per cent  from 40 kobo as at September 30, 2019 to N1.77 as at March 14, 2022.   Between 2012 and 2021 the Earnings Per Share of Neimeth grew 280 per cent  from negative 5kobo to  14 kobo per share,. The ability of the company to create wealth for shareholders has been applauded by industry and market  watchers and regulators.

In 2019  Azoji, was named among Nigeria’s top 25 CEOs on account of the wealth creation ability of the Company.  And in 2021 the company was rewarded with the award of the Nigerian Investor Value Awards as the Best Performing Stock (Healthcare) in the Nigerian capital market on account of the value it created for shareholders through capital gains.  The NIVA Award celebrates public companies that have created sustainable value through strategic intelligence, operating efficiencies, market leadership and organizational values for investors.  It celebrates the wealth building capabilities of quoted companies in Nigeria.

Also in 2021 Neimeth was nominated along with Airtel West Africa Plc and FBN Holdings Plc for the Award of the listed company of the year. This was meant for companies  that attained high level earnings for investors in this case over 300 per cent.

In May 2022, President Muhammad Buhari honoured  Azoji with the National Productivity Order of Merit (NPOM) Award  for his hardwork and excellence in piloting the affairs of the company to attain greater productivity.

The company has equally transited from non dividend payment which lasted for a decade to one of consistent payment of dividend to shareholders. In 2020 it applied its profits to restructure its balance sheet and returned to dividend payment in 2021.  In that year it paid a dividend of 6.5 Kobo and in 2022  this was increased by eight per cent to 7.0 kobo per share.

 

MTN Nigeria Communications (MTN Nigeria) Plc has concluded arrangements to launch its new N200 bond issue as professional parties to the telecoms group intensify engagements with key stakeholders for the success of the offer.

Sources said the bond issue may open within the next few weeks. Stockbroking firms have started extensive marketing of the impending offer, using conclusive details that suggest finalisation of the offer structure.

Available documents indicated that MTN Nigeria plans to issue two tranches of bonds- a tranche of four-year bond maturing in 2026 and another tranche of 10-year bond maturing in 2032.

The forthcoming bond issue has also been rated AAA by Global Credit Rating (GCR) and Aa+ by Agusto & Co. Limited, the same ratings assigned to MTN Nigeria; underlining its strong financial position.

The new capital raising would be undertaken through the book-building method, an auction-like, bid-based process that usually targets investment firms and high networth investors.

MTN Nigeria will use the net proceeds of the new bond issue to support its capital expenditure, working capital and other general corporate purposes.

Under the arrangements, MTN Nigeria will offer a tranche of four-year bonds and another tranche of 10-year bonds; all as fixed rate senior unsecured bonds under its new N200 billion bond issuance programme.

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The bond will be offered at a par value of N1,000 with minimum subscription of 10,000 or N10 million and thereafter in multiples of N1 million. The new bonds are expected to be listed on the FMDQ Securities Exchange Limited after the completion of the issuance.

Market analysts said they expected the offer to be fully subscribed citing MTN Nigeria’s industry position and rating.

MTN Nigeria has been active in the domestic capital market this year; leveraging its strong market position to access funds. It had in May, this year raised N127 billion new debt capital, placing it in better position to diversify its capital funding.

MTN Nigeria had in May 2022 issued two commercial papers worth N127 billion. The two issuances were under its N150 billion commercial paper (CP) issuance programme. The net proceeds of the CPs were used by MTN Nigeria to support its short-term working capital and funding requirements.

MTN Nigeria is one of Africa’s largest providers of communications services and Nigeria’s premier provider of connectivity, communication and collaboration solutions. MTN Nigeria is a member of MTN Group – a multinational telecommunications group, which operates in 21 countries in Africa and the Middle East. The company serves over 77 million subscribers with national coverage and a fibre network that reaches every state in the nation.

Latest audited report of MTN Nigeria showed mobile subscribers of 68.5 million, with active data users of 34.3 million and active fintech subscribers of 9.4 million.

Key extracts of the audited report and accounts of MTN Nigeria for the year ended December 31, 2021 showed that gross revenue increased by 23.3 per cent to N1.7 trillion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.9 per cent to N877.1 billion with EBITDA margin increasing by 2.1 percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67.

Half-year results for 2022 showed profit after tax of N181.63 billion; representing 28.06 per cent growth in net profit. Total assets stood at N2.53 trillion; an increase of 16.44 per cent. Recent reports estimated that MTN Nigeria has 74.1 million mobile subscribers and 36.8 million active data users.

Market analysts said MTN Nigeria was well positioned for long-term sustainable growth due to its infrastructure investments; including the impending deployment of 5G technology due to commence this quarter. It already has 90.01 per cent 2G population coverage, 82.63 per cent 3G population coverage, and 70.75 per cent 4G population coverage.