Tag: Company

  • Nigeria Mortgage Refinance Company lists shares on NASD

    Investors interested in the ordinary shares of Nigeria Mortgage Refinance Company (NMRC) Plc now have opportunity to buy into Nigeria’s first and only mortgage refinancing company with the listing of the company on the NASD OTC Plc.

    The NASD is an over-the-counter (OTC) platform that trades on unlisted securities. It is licensed by Securities and Exchange Commission (SEC). The NASD OTC was formally launched on July 1 and opened for trading on July 2, 2013.

    Listing details obtained by The Nation indicated that NMRC’s 1.76 billion ordinary shares were listed at N4 per share, which was the last issue price for the shares. At the last trading, the company’s share price has, however, increased to N4.55 per share, which subsists as the company’s current price on the board. At the last count, a total of N568.75 million was staked on 125 million ordinary shares of the NMRC, which trades under the security code SDNMRCPLC on the over the counter market.

    Audited report and accounts of NMRC for the 2014 financial year indicated that the company made a total income of N732.92 million and profit after tax of N160.15 million.

    It should be recalled that the NMRC had earlier listed its N8 billion bond on the FMDQ OTC Plc. The N8 billion NMRC bond carries a coupon rate of 14.9 per cent and due on 2030. The N8 billion bond was part of the company’s N140 billion Medium-Term Note Programme.

    The establishment of the NMRC in 2013 set in motion the course towards homeownership from accessibility to affordable, adequate and quality housing in the Nigerian economy, through the promotion and development of the primary and secondary mortgage markets in Nigeria.

    However, a crucial aspect in the success of the NMRC model being the raising of finance from the debt capital market through regular and large issuances of bonds. The first tranche was the N8.0 billion that was listed on the FMDQ OTC.

    Other major companies on the NASD included Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange and Jaiz Bank Plc, the Islamic bank.

    Other stocks included Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc, Food Concepts Plc, 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 and Trustbond Mortgage Bank Plc.

    NMRC was incorporated on June 24, 2013, after obtaining an Approval -in-principle from the Central Bank of Nigeria (CBN) on June 20, 2013. It was issued its licence for operations on February 18, this year.

    NMRC was  established to  bridge  the  funding  cost  of  residential  mortgages  and  promote  the availability  as  well  as  the  affordability  of  good  housing  to  Nigerians  by  providing  increased liquidity in the mortgage market though the mortgage and commercial banks.

    It was a key component of the Nigeria Housing Finance Programme, which was initiated by the Federal Ministry of Finance (FMOF), the Central Bank of Nigeria (CBN), Federal Ministry of Lands & Urban Development & Housing and the World Bank/IFC, with the principal objective of addressing the long-term funding constraints hindering the growth of the primary mortgage market, and reducing the costs of  residential  mortgages  and  available housing  to  working Nigerians

     

     

     

     

  • Airtel voted best company in CSR Health Intervention at SERAs 2015

    Airtel voted best company in CSR Health Intervention at SERAs 2015

    Leading telecoms operator, Airtel Nigeria, has emerged the ‘Best Company in CSR Health Intervention’ at the 2015 Nigeria CSR Award, otherwise known as the Social Enterprise Report Awards (SERAs).

    Themed: “Building Partnership for a Sustainable Future”, the 2015 SERAs Awards, which is the 9th edition, held at the Muson Centre, Onikan Lagos, with notable personalities in attendance.

    Airtel, at the event, bagged the award category, which had Shell, Exxon Mobil, Sahara Oil and Nigerian Stock Exchange (NSE) as key contenders. The telco was also nominated in other categories including the ‘Best Companies in Partnership for Development,’ ‘Best Company in Promotion of Gender Equality,’ and Best Company in Sustainability Reporting.’

    According to the organisers, Airtel Nigeria won the Best Company in CSR Health Intervention’ owing to its outstanding impact through its health intervention programmes in Millennium Village Projects (MVP) in Pampaida, Kaduna that has improved healthcare system and saved many lives.

    The Chief Sales Officer, Airtel Nigeria, Godfrey Efeurhobo, received the award on behalf of the company’s Managing Director and Chief Executive Officer, Segun Ogunsanya.

    Commenting on the award, Mr. Ogunsanya said the award is a much appreciated testimony of Airtel’s efforts at positively impacting society and creating credible platforms to uplift the underprivileged.

    He also noted that Airtel is committed to connecting more Nigerians to their dreams, empowering more telecoms consumers and creating more opportunities for underprivileged persons.

    MD, Total Nigeria Plc., Alexis Vovk; MD, Shell Nigeria Exploration and Production Company, Mr. Bayo Ojulari were at the event.

    Other members of the Airtel team in attendance were, Head of PR, Adefemi Adeniran; Head, High Value Customer Experience, Sarwiyat Rahaman; Digital and PR Manager, Erhumu Bayagbon and Assistant CSR Manager, Chioma Okolie.

    As part of Airtel’s technological support to the Millennium Villages Projects in Nigeria, the telco provided base stations and complimentary data to enhance exchange of information between the central server and the community health workers, while also boosting communication between the health workers and villagers. This in effect has drastically reduced infant and maternal mortality in the region.

    Airtel’s innovative services such as Dial-a-Doctor and Mobile Midwife have also contributed to quality healthcare delivery in Nigeria.

  • Lubcon Oil is ‘Best Indigenous Lubricant Company’

    Lubcon Oil is ‘Best Indigenous Lubricant Company’

    An indigenous lubricant oil producing company in Ilorin, Kwara State capital, Lubcon Limited has emerged winner of the National Productivity Order of Merit Award, given by National Productivity Centre, an arm of the Federal Ministry of Labour and Productivity.

    The award was bestowed on Lubcon by President Muhammadu Buhari, through the Permanent Secretary, Federal Ministry of Labour & Productivity, Dr. Clement O. Illoh, at a ceremony marking the 15th National Productivity Day, which held at the Nicon Luxury Hotel, Abuja.

    He expressed delight about the criteria for choosing the overall winners at this year’s edition of the awards. “Ten thousand entries were received this year by the award committee; the entries were shortlisted to 11 winners in the individual category and two winners in the corporate category.

    Lubcon Oil was picked for its high level of professionalism, the use of cutting-edge technology, optimum returns to shareholders, and immense contribution to wealth creation, employment generation, and overall development of Nigeria,” he said.

    He said the President signed the certificates of Honour of the awardees and that this year’s recipients should prepare for greater challenges in nation building, which his government is currently driving. The award, President Buhari says, is meant to redirect the minds of Nigerians from various walks of life to work harder, and renew hope of a better Nigeria.

    The objective of the award is to establish and institutionalise a culture of productive work ethics. The award is also intended to provoke a more positive attitude to work among Nigerians and to serve as a spice to higher productivity.

    It is also purposed to widen the scope of productivity awareness in Nigeria and, thus, stimulate productivity consciousness, productivity reorientation and reawakening among the citizenry.

  • Cement Company of Northern Nigeria declares N1.918b profit

    Cement Company of Northern Nigeria declares N1.918b profit

    • BUA supports govt’s sugar policy

    Cement Company of Northern Nigeria (CCNN) Plc (Sokoto Cement), a subsidiary of BUA Group, has declared a profit after tax (PAT) of N1.918 billion for the 2014 financial year. This represents a 23.05 per cent increase from a PAT of N1.559 billion in 2013.

    Speaking at the company’s 36th Annual General Meeting (AGM) in Abuja, the Chairman of CCNN Plc, Mr. Abdulsamad Rabiu, said despite lower cement sales recorded in the last quarter of 2014 mainly due to pockets of unrest in CCNN Plc’s business markets, the company’s focus on efficiency and strategic investments resulted in steady growth during this period.

    Rabiu said from a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40b in 2014.

    Shareholders were also apprised about notable developments the company took in the financial year, including CCNN Plc’s proposed N48b cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.

    Other business of the day included an amendment of articles 117 and 119 as contained in CCNN Plc’s Articles of Association, which saw shareholders assent to changes in reportage of financial results as well as the recognition of electronic mail addresses respectively.

    Analysts expect BUA Group, CCNN Plc’s chief shareholder to further boost revenue in 2015, with the coming on stream of its three million metric tonne Obu Cement plant in Southern Nigeria.

    Ms Adetutu Adegbayibi, an Investment Research Analyst at Meristem Securities anticipates that CCNN Plc’s figures for 2015 could show a PAT of N1.94 billion, 1.93 per cent higher than 2014.

    Established in 1962, CCNN Plc, which is one of Nigeria’s oldest cement companies, produces and markets cement under the brand name ‘Sokoto Cement’. The company also runs the only cement plant in North-West Nigeria. Its primary catchment areas are Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna States.

    Nigeria’s food and infrastructure conglomerate BUA Group, has reaffirmed its commitment to implement the Federal Government’s backward integration policy in the sugar industry through its sugar subsidiary, BUA Sugar.

    BUA Group operates a state-of-the-art sugar refinery in Lagos and plans to commission its second mega sugar refinery in Port-Harcourt, the Rivers State capital, by the end of this year. The combined capacity of these two refineries of around 1.5million metric tonnes/year will make BUA Group the largest single refiner of sugar within Nigeria.

  • Mama Rose and company

    Mama Rose and company

    Their exploits are the sort not a few believe are exclusive to men. After all, they are supposed to be the weaker vessel. But these women have shown that what lies in them are far more than what the ordinary eyes can see. Their inside must be made of steel.

    They radiate love, true love, candour, panache, mercy and Samaritanism. And the icing on it, their acts have nothing to do with politics or quest for political offices. All they want is just a better society.

    These women I write of are seven in all and have done great exploits to better the Niger Delta. For their feats, they are princesses of hope. You will understand better as I go on.

    Let’s start with Mama Rose, whose real name is Mrs Biobara Makalabh (aka Mama Rose). The 55-year-old lawyer and ex-police officer, who rose to the rank of a Divisional Police Officer (DPO), hails from Otuabagi in Bayelsa State. She is the founder of The Makalabh, a development foundation propagating peace.

    Otuabagi, her hometown, is host to over 22 oil wells, but that is all about it. In terms of infrastructure, the community has nothing to show for it: no water and there is erosion everywhere.  Her people are not happy. They are suffering.

    During the 2011 elections, the community almost went up in flames. The people wanted a particular candidate to represent them, but the people in government wanted another. The battle-line was drawn. Bloodbath was imminent.  The youth were determined to ensure no one would hijack the polls and women were ready to bare it all to uphold the one man-one vote doctrine.

    It became the lot of this woman of uneasy virtues to pour ice on the scorching scenario. She got a compromise which saw the community putting peace first and it eventually resulted in every camp being absorbed. But for her, things would have fallen apart.

    She has a good company in Mrs. Mfon Edidiong Esua. At just 35, this native of Akai Atti Udesi community in Mbo Local Government Area of Akwa Ibom State is the Executive Director of Dynamic Youth Development Organisation, a Non-Governmental Organisation which is involved in several peace building efforts and conflict resolution. She has averted conflicts between the youth and leaders of Ikot Ambon in Ibesikpo Asutan.

    An interesting conflict she was instrumental to stopping centres around the selection of beneficiaries of an empowerment programme launched by a construction company.  They were accusations and counter-accusations and in time, hell would have broken loose. Mrs Esua held parleys with parties in the dispute. She was able to discover the core of the crisis: favoritism, the evil man-know-man syndrome that is at the heart of the Nigerian dilemma. She also discovered there were elements of corruption. Bribes were offered ad received in exchange for slots. At the end, she ensured the real idea behind the scheme was implemented and only the less privileged and the vulnerable had the last laugh.

    ”Community leaders and youth embraced dialogue and transparently selected trainees; “the names of those selected were read to the hearing of all at a community forum and all agreed. I am proud that I have been able to mitigate a conflict which would have resulted in war between families and heads of the community and that I have been listened to by men not regarding the fact that I am a woman,” says Mrs Esua.

    For 64-year-old Mrs Mercy Akpowowo, her intervention was in helping farmers through her Progressive Women Cassava Farmers Cooperative Society in Evbuwa Village of Orhionmwon Local Government Area of Edo State. It was her own way of mitigating conflict within various groups in the village.

    Before Mrs Akpowowo’s intervention, the women were marketing their produce individually and conflict often arose over non-payment by debtors.

    In her words: “One conflict I helped mitigate is that between a couple and a certain woman. The couple sold three acres of cassava farm to the woman for a given amount. She defaulted in the agreement terms and this led to serious fighting between the two families. The matter was reported to me by the seller, who is a member of my Cooperative, and I immediately invited some opinion leaders and influential people in the community, including the Community Head (Odionwere) to intervene.”

    Mrs Akpowowo’s Cooperative has attracted two grants  from the World Bank Fadama III scheme and another from the TY Danjuma Foundation. With the grants, the co-operative now owns a facility with which they process their cassava and make more profit selling as finished product, instead of raw material.

    The people of Rumuekpe, an oil-bearing enclave in Rivers, cannot easily forget Mrs Blessing Orijos. One of the reasons for this is the conflict which almost sent the community under in 2005.  The oil almost became a curse when financial largess from the oil company operating in their land induced a leadership tussle. Blood was shed. Heads were broken. It was as though the end was near.

    Mrs Orijos, who founded the Rumuekpe Women Prayer Warriors, was one of those who lost loved ones: “People were dying every day. Many people were killed and the community was deserted… They even came to Port Harcourt and killed some people in their houses. My brother was also killed.”

    Her group staged protests and prayed vigorously. Through their acts, they appealed to the conscience of the evil doers.

    She recalls:  ”When we entered, the boys came out from their hideouts confessing and surrendering.”

    And in Delta, many Internally Displaced Persons (IDPs) will for a long time remember Hon Fanty Wareya, who  fed hundreds of them during the May 2009 clash between militant and troops of the Joint Task Force in Gbaramatu area of Warri.

    “I had over 30 persons in my house in Warri who managed to find their way through Sapele River and other routes. I had to take care of them. Then came the duties at the IDP camp. I had to be at the camp every day. I drove from Okumagba (Avenue in Warri) to Ogbe Ijoh daily to make sure that the women and children were catered for.”

    There are three others who have shown that being a woman should not be a drawback. Emem Okon, who is the founder of Kebetkache Women Development & Resource Centre in Port Harcourt Rivers State, is one of them. She led the historic ‘Mothers for Peace´ marches held in Tere-ama, Emuoha and Ogoni land, which made many denounce militancy, cultism and other violent practices.  The other two are Mrs Ajih Florence, the Executive Director of Women Advancement and Development Initiative and first female State Coordinator of Civil Society Organisation on HIV/AIDs in Nigeria and Ngwamma Onuoha, Assistant Secretary, P4P Central Working Committee from Ondo and Abia states. Their exploits made the Partnership Initiative in Niger Delta (PIND) honour them on Women’s Day.

    My final take: Service should not be offered only when it is a means to getting the people’s votes. We are in a season when politicians are giving gifts left, right and centre but they are not giving freely. They are given for what they will get in return. That is wrong. One good turn deserves another but we should not always give because of what we are expecting. Do yours not because you expect back. That is what selflessness is all about.

     

     

  • Financial crimes’ body tightens rules on company ownership

    New guidelines by the Financial Action Task Force (FATF) on preventing the misuse of corporate vehicles to hide true company owners, has been inaugurated.

    A report obtained from The International Banking Operations, quoted crime prevention specialists as saying the new guidelines will help countries struggling to meet international standards on anti-money laundering and terrorism financing.

    The FATF last year removed Nigeria from the list of countries identified as jurisdictions with significant deficiencies in their Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regimes.

    The action was taken following the country’s full implementation of the mutually agreed Action Plan and the exhibition of a clear political commitment to continue the development of its AML/CFT regime.

    In a statement in Paris, France, the FATF expressed satisfaction with the political will displayed by Nigeria in improving its Global AML/CFT compliance. Accordingly, the FATF voted unanimously to expunge Nigeria from the list of jurisdictions.

    The Presidential Committee on Financial Action Task Force headed by Stephen Oronsaye, said the FATF took the decision at the end of its plenary meeting held in Paris, France, between October 14 and 18, last year.

    Oronsaye noted: “In the recent past, Nigeria has received technical assistance from the IMF to develop a risk-based approach to AML/CFT supervision.  This has resulted in the development of similar procedures across all regulatory authorities as well as the financial intelligence unit, namely the Central Bank of Nigeria, the Securities and Exchange Commission, the National Insurance Commission and the Nigerian Financial Intelligence Unit.’’

    Nigeria issued the Terrorism Prevention (Freezing of International Terrorist Funds and Other Related Measures) Regulations 2011.

    The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) said Nigeria has also addressed a deficiency relating to Recommendation five of the revised FATF Standards.

    This criminalises terrorist financing, including the financing of a terrorist organisation and an individual terrorist, and covers issues relating to terrorist funds, use of funds, intentional elements of the terrorist financing offence, location of the offender, ancillary offences, predicate offences of money laundering, liability of legal persons, and sanctions.

  • Attention, Benin Electricity Company

    SIR: I hereby call the attention of Benin Electricity Company to the anomalies being perpetrated by its office in Ikole-Ekiti. I refer to the exploitation of the people and residents of Ikole-Ekiti through what I call criminal shedding of electricity.

    I believe that before the company can shed power, it should be with prior notice to the client/customer. Secondly, the method used in shedding is such that there will be epileptic power supply for a day and the following day there will be total blackout. This will amount to supplying epileptic power for just 15 days in a month without corresponding reduction in the monthly bill.

    I feel this criminal act should be checked and corrected. The staff should not skin the customers in order to make profit. The era of logical stealing and exploitation should be over by now as the electricity distribution company now belongs to private body which is expected to promote the culture of transparency and integrity.

    • Adewumi Tope Humble

    Odo-Oro Ekiti, Ekiti State

     

  • Controversy trails SSS invasion of Lagos company

    Controversy trails SSS invasion of Lagos company

    State Security Service (SSS) operatives yesterday invaded the premises of a Lagos-based research and marketing company, TNS RMS, in Ojodu and whisked away some of its staff.

    The SSS men stormed the company’s premises about 11a.m and left about 2.pm.They were said to have ransacked its office and carted away materials from past research activities carried by the company.

    It was not clear at press time the reason for the invasion as initial online media reports linked the invasion of the company to an opinion poll currently being conducted by the company on the forthcoming governorship election in Osun State.

    An impeccable source who spoke in confidence, however, said that the invasion of the  company by SSS operatives may not be unconnected with a recent assignment carried out by the firm in Enugu State.

    “Some officials of the company had allegedly taken photographs of a military facility in Enugu during field research and were trailed by security operatives to the company’s head office in Ojodu, a Lagos suburb.”

    TNS RMS is a research company that engages in business, marketing and political research and surveys. The company has conducted election polls in Edo, Ekiti and is currently handling the pre-election poll for the forthcoming Osun State governorship election.

    When our correspondents visited the company about 3pm yesterday, many of its employees were seen going about their normal duties while a patrol van was parked at the main gate of the company.

    Attempts to speak with some members of the staff of the company proved abortive as many of them declined comments.

  • Mortgage Refinance Company to narrow N25tr housing gap

    The Mortgage Refinance Company (MRC), which last week, got its operating guidelines from the Central Bank of Nigeria (CBN) would help bridge the N25 trillion housing deficit, analysts have said.

    Nigeria, which is sub-Sahara Africa’s largest economy after South Africa, is struggling to deliver housing to its 160 million population because of the high prices of houses.

    This constricts demand for housing, while also exposing mortgage finance institutions (MFIs) to increased risk of default as mortgages are priced at unhealthy double digit rates.

    Across the continent, home financing is largely accessible by mainly the upper class and the upper middle classes. This can be traced in part to the preference of the mortgage lenders for mainly corporate clients while individuals are left to access mortgage finance at exploitative rates.

    A report on the mortgage industry titled: “Retrogressive view on the Mortgage Refinance Company (MRC), said Nigeria has an estimated 18 million units housing deficits, which grow by two million units yearly.

    The establishment of the MRC, it said, was aimed at increasing the liquidity within the mortgage sub-sector and mortgage credit, reducing mortgage and related costs, and making residential housing more affordable.

    The MRC is being established to provide short-term liquidity and/or medium to long-term funding or guarantees to mortgage finance lenders. It is expected to increase yearly mortgage to 200,000 from the current average of 20,000 mortgages in the next few years, representing an increase of 900 per cent.

    The firm is also expected to act as an intermediary between originators of mortgage loans and the capital market, who are typically looking for long-dated high quality securities. The operations of the MRC are expected to enhance the development of the secondary mortgage market, which till date remains largely untapped. Already, the World Bank has committed $300 million interest-free capital to the project while other local investors have equally shown optimism.

    The CBN said the regulatory framework is drawn pursuant to the provisions of the CBN Act 2007, Banks and Other Financial Institutions Act (BOFIA) CAP B3, Laws of the Federation of Nigeria (LFN) 2004, other relevant Laws, and extant CBN guidelines and circulars.

    The framework prescribes the basic regulatory requirements for the MRC’s principal line of business of re-financing credits to borrowers on the security of residential mortgage assets and other qualified collaterals. It also sets the capital adequacy requirements for the MRC, including its minimum paid-up capital, maximum leverage limit, and the minimum risk-weighted capital requirement.

    Furthermore, it specifies the types of collateral that a borrower can pledge for the MRC’s advances, and the discount that the MRC shall apply in determining how much it can lend against any qualified collateral. It also prescribes procedures for the management of the MRC’s interest rate risk, its permissible investments and liquidity requirements.

    According to the CBN, the benefits of such mortgage liquidity facilities are well documented and globally acknowledged. “As a financial institution, the MRC would be under the regulatory and supervisory purview of the CBN. This regulatory framework is, therefore, designed to ensure that the MRC operates in a safe and sound manner, on internationally accepted principles, standards and best practice in mortgage liquidity facilities,” it said.

     

  • Tourist Company opts to delist shares from NSE

    Tourist Company of Nigeria (TCN) Plc has opted to delist its shares from the Nigerian Stock Exchange (NSE) instead of issuance of new shares or sale of existing shares to dilute shareholdings of the core investors in the hotel and tourism company and release 20 per cent equity stake to the general investing public.

    A status report obtained by The Nation showed that the core investors in TCN, which owns the palatial Federal Palace Hotel & Casino based in Victoria Island, Lagos, have decided to voluntarily delist the company after the Exchange flagged the company for failing to maintain the minimum 20 per cent free float required to sustain its listing at the NSE.

    The Nation had exclusively reported that Tourist Company, Union Bank of Nigeria (UBN) Plc, Dangote Cement and Studio Press were in default of the listing rule that requires quoted companies on the main board of the NSE to maintain a 20 per cent public free float.

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

    Thus, public shareholders and public float do not include shareholders or shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    The recently revised listing rules of the NSE stipulates that the public shall hold a minimum of 20 per cent of each class of equity securities of a company quoted on the main board, 15 per cent of each class of equity securities of a company quoted on the Alternative Securities Market (ASeM) and 10 per cent of each class of equity securities of a dual-listed company. Prior to the review, the minimum public float for the main board of NSE was 25 per cent.

    The Nation had reported that TCN has the highest deficiency rate of 18.69 per cent and the core investors would have to divest some 420 million ordinary shares or issue proportionate supplementary shares to dilute their shareholdings.

    The latest NSE report indicated that the core investors in TCN opted not to dilute or sell their shareholdings and have filed for voluntary delisting as a way out of the free float deficiency.

    The delisting of TCN will significantly reduce the profile of the hotels and lodging subsector at the NSE. The most capitalised stock in the subsector, TCN opened yesterday with a market capitalisation of N9.17 billion. TCN has 2.246 billion ordinary shares of 50 kobo each with current market consideration of about N4.08 per share.

    However, TCN has struggled with high costs in recent period, although it appears to be on the verge of a breakeven. Third quarter report for the period ended March 31, 2013 showed a net loss of N52.09 million on a turnover of N942.05 million as against net loss of N147.47 million recorded on a turnover of N789.01 million in comparable period of 2012. It had posted a net loss of N522.25 million for the year ended June 30, 2012.

    The directors of TCN had initially applied to the NSE for an extended period to comply with the 20 per cent free float. The NSE had given February 28, this year as the deadline for TCN to regularise its public float.

    NSE indicated that the timelines for the compliance with the 20 per cent minimum public float were given to the company after it had applied for waivers from the Quotations Committee of the NSE. The company was said to have outlined plans to meet the minimum public float, which the NSE took into consideration in extending the timeframe for it to comply with the minimum public float.

    By the expiration of the deadlines, the core investors were mandatorily required to have completed partial divestments or dilution of their shareholdings to free 20 per cent equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the companies. In the extreme instance, a company with deficient public float may opt to delist its shares.

    Any company granted a waiver under the free float is however required to provide quarterly disclosure reports to the NSE on the efforts being made to fully comply by the deadlines.

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