The Nation Newspaper

Tag: IPO

  • Man dies after police insist on N20, 000 for bail

    He died in the hospital- police

    A 45-year old man, Osifo Okeguare, has reportedly died in police cell at the Ekpoma Divisional Police headquarters in Esan West local government areas.

    It was gathered the police detained him after his family could not raise the N20, 000 demanded to release him on bail.

    An activist, Mr. Kola Edokpayi, alleged that the family raised N15, 000 but the IPO in charge of case insisted on keeping the deceased.

    But spokesman for the Edo Police Command, DSP Chidi Nwabuzor, said the late Osifo and one Richard Femi, on February 10, 2019, were arrested while attempting to steal a motorcycle where it was parked.

    Read Also: Mother, daughter in police net over baby theft

    DSP Nwabuzor said Osifo took ill while in police cell and was taken to the Eremosele hospital in Ekpoma for treatment where he later died.

    Nwabuzor said his corpse was deposited at the Iruekpen General hospital for autopsy examination.

    He appealed to members of the family to remain calm and law abiding until the autopsy examination is made known.

  • SAHCO extends N1.89b IPO amid low demand

    Skyway Aviation Handling Company (SAHCO) Plc has ex-tended its initial public offering (IPO) by 12 working days, as concerns over valuation and slowdown in the equities market appeared to have weakened demand for the shares of the ground handling company.

    SAHCO is offering 406.074 million ordinary shares of 50 kobo each through an IPO at N4.65 per share. The IPO is an offer for sale, implying that the net proceeds will go to the majority core investor, which is divesting partially to allow retail minority ownerships.

    Application list for the N1.89 billion IPO, which was scheduled to close on December 19, 2018, has now been extended till January 09, 2019. The extension of the IPO was approved by the Securities and Exchange Commission (SEC).

    Market sources said the extension might not be unconnected with the perceived low demand for the IPO.

    A receiving agent, who spoke under condition of anonymity, said the demand for the IPO has been modest with investors unwilling to commit to large subscriptions.

    Sources said investors were concerned that the IPO price of N4.65 might be unattractive, considering the depreciation in the stock market and valuations of other related stocks.

    SAHCO was privatised by the Federal Government in 2009. Sifax Group acquired the entire share capital of the firm. The Share Sale Purchase Agreement (SSPA), however, mandates the majority core investor to divest 49 per cent of the shares of the firm to the Nigerian investing public.

    Nigerian Aviation Handling Company (Nahco) Plc, an older and bigger competitor, closed on Monday at N3.37 per share. Nahco has traded in the past one year between a high of N4.90 and a low of N3.18 per share.

    Nahco controls more than two-thirds of the more lucrative international airlines segment of the ground handling market and almost at par with Sahco in local airlines segment. While SAHCO is nimbler, Nahco has more extensive facilities and network with operations in 14 stations and bigger warehouses.

    Market analysts had told The Nation that SAHCO appeared to be carrying a premium that may subject the IPO to peer group pricing pressure, citing other mid-level stocks trading below the offer price.

    An investment analyst, however, said the premium on SAHCO is justifiable as the shares are not commonly available and cannot be subjected to true dynamics of market pricing until when listed.

    A stockbroker with a Lagos-based investment group said the relatively high offer price, expanded shareholders’ base and the fact that the net proceeds of the IPO will not be available for reinvestment in the company may determine the subscription level of the IPO.

    A market analyst noted that investors might be cautious on the post-IPO pricing, citing the recent trend that has seen most share prices falling considerably below recent offer prices.

    Analysts at Cordros Securities Limited, however, said SAHCO has potential to deliver 28.44 per cent capital appreciation of the current price of its IPO and strong potential to sustain growth  in the years ahead, given its exposure to long-term expansion of air traffic, improvement in macro environment, relatively under-geared balance sheet and its competitiveness enhanced by IATA Safety Audit for Ground Operations (ISAGO) registration.

    According to investment analysts, a valuation shows a target price of N5.97 per share for SAHCO in the immediate future, representing an upside of 28.44 per cent on its IPO price of N4.65 per share.

    “We have valued SAHCO, using a pure-Discounted Cash Flow (DCF) valuation methodology, evaluating the company’s assets across its ramp and cargo handling business, in addition to future investments. Our positive investment case for SAHCO centres on the fact that the company represents a long-term play on air traffic and aviation industry growth, and benefits from high barriers to entry,” Cordros Securities stated.

    The report, however, identified key downside risks to include weaker-than-expected macro-economic performance, susceptibility of operations to labour action, revenue downside from potential insolvency of some airline customers and regulatory risk.

    The report noted that SAHCO has become somewhat of the ‘poster-child’ for privatisation, stemming from its incredible turnaround in performance in a short period since the government’s divestment.

    According to the report, management of SAHCO has stated its intention of sustaining the company’s impressive post-privatisation performance, listing key strategic goals to include expansion of revenue, cost control and reduction, customer satisfaction and stability and sustainability.

    The report pointed out that SAHCO has a positive long-term growth outlook, citing the transformation in the Nigerian market, which appears to be promising for SAHCO.

    According to the report, Nigeria’s aviation market is the third largest in Africa. Although relatively cyclical, the sector has recorded a 10-year GDP CAGR of 9.0 per cent, almost double the national GDP CAGR of five per cent. Nigeria has huge potential to become an aviation hub for Africa, using its natural advantages such as its central location on the continent, huge population and a growing middle class.

    “As the second largest aviation ground handling service provider in Nigeria, SAHCO is well positioned to benefit from the expected long-term expansion of air traffic growth and demand for travel to, from and over Nigeria and the West African region. With respect to Nigeria air traffic trends, growth is expected to rebound after a more depressed period reflective of macro-economic development,” the report stated.

    The Nigerian Bureau of Statistics (NBS) expects air traffic growth of 20 per cent for 2018 compared to 2017, on the back of improving business confidence, positive policy reforms – ease of doing business, visa on arrival – as well as development of infrastructure.

    “In our view, the Nigerian market is transitioning, from an economic standpoint – following three challenging years – and 2018 and beyond appear to be promising years for SAHCO to take advantage of. Firstly, we see economic growth benefitting from higher government and private sector spending, both riding on improved revenues from crude oil. Secondly, improved oil earnings should further improve FX liquidity and sustain stability, after the volatile era,” Cordros stated.

  • MTN yet to file application for IPO, says SEC

    NIGERIA’S apex capital market regulator, the Securities and Exchange Commission (SEC), yesterday confirmed that MTN Nigeria has not filed any application for consideration of the telco’s much-touted initial public offering (IPO), contrary to a media report.

    SEC stated that neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application on the IPO with the commission.

    It is mandatory for any company seeking to float an offer to submit such offer to the review of SEC and obtain the final approval of the commission before rounding off other pre-offer processes.

    In a circular, SEC noted that a report in a newspaper (not The Nation) and other media outlets insinuating that the MTN IPO was set to go was “false, misleading and without merit”.

    According to the commission, MTN Nigeria Limited to the best of the commission’s knowledge is a private company limited by shares and as at now, neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application with the SEC on the IPO.

    “Given that there is no application from MTN before the commission, there could not have been a request by MTN or any of its representatives or advisers requiring any form of regulatory review,” SEC stated.

    The commission noted that it welcomes filings aimed at deepening and broadening the capital market and stands ready to provide the necessary regulatory support.

    It added that if MTN finally files a formal and complete application, it would be treated with the usual diligence and urgency that is applicable to such filings.

    “Furthermore, we wish to remind all capital market operators of their duty not to furnish information, which is false, and misleading in any material particular as the commission would not hesitate to take necessary regulatory actions on any erring market operator,” SEC stated.

    SEC reiterated its commitment to its core mandate of investor protection and maintaining the integrity of the Nigerian capital market.

    MTN Nigeria had in 2016 appointed the advisory team and set out a roadmap towards listing on the Nigerian Stock Exchange (NSE) in 2017.

    The board of MTN Nigeria had announced the appointment of Stanbic IBTC Capital Limited and its affiliates, Standard Bank of South Africa Limited and Standard Advisory London Limited and Citigroup Global Markets Limited as the joint transaction advisors and joint global coordinators for the proposed listing of MTN Nigeria on the NSE. The telco, however, missed the 2017 target.

    MTN Nigeria has not confirmed the size of its IPO, but many sources have said the telco plans to raise between $400 million and $500 million through the IPO scheduled for the second half of this year.

    It should be recalled that as part of the conditions to settle its $3.4 billion fine by the Nigerian Communications Commission (NCC), MTN Nigeria had announced its intention to list its shares on the NSE as soon as commercially and legally possible.

     

     

  • MTN gears up for IPO

    MTN Group yesterday said it was perfecting the details of its proposed Nigeria Initial Public Offering (IPO), the News Agency of Nigeria (NAN) reports.

    MTN Group’s spokesperson, who pleaded anonymity, confirmed this in response to enquiries on why the telco was yet to file applications for the proposed offer.

    Both the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) are yet to receive applications from the company for the offer.

    The MTN representative said detailed process and work stream on the IPO were currently underway and would be announced at the appropriate time.

    NAN reports that IPO is process through which a private company or corporation raises investment capital by offering its stock to the public for the first time.

    Speaking on the IPO process, the spokesperson said MTN had not made known the offer value contrary to the 500 million dollars being speculated in the media.

    “To clarify some matters on the IPO process, no amount/value has been given by MTN Group or MTN Nigeria regarding the IPO and there was never a statement on a ‘proposed $500m IPO.’

    “In the communication we have issued to the market, we have noted that we expected this IPO process to be concluded during 2018 and there was not a specific date given,” the representative said.

  • MTN’s IPO

    •A good development for the telecommunications giant

    The local bourse has been abuzz over reports that the telecommunications giant, MTN Nigeria Limited, is finally set to offload some 30 per cent of its shares valued at about $500 million to Nigerian investors during the first half of the year. For a market that has, in recent times, been upbeat, it is welcome news.

    Apart from helping to deepen the market, it promises a significant boost to its Nigerian operations through injection of additional capital from new shareholders. Coincidentally, the telecommunications company is also reported as preparing a similar offer on the Ghana Stock Exchange to raise $447 million this month to boost its operations in that country.

    The difference, however, is that whereas the Ghana Initial Public Offer merely formalises part of the conditions for granting the company the 15-year license for the fourth-generation spectrum – which is that Ghanaian investors own 35 percent of the business – the Nigerian public offer comes as part of the final settlement in the aftermath of the hefty penalty imposed on the company for its failure to meet the deadline to deactivate 5.2 million unregistered subscribers on its network in 2015.

    The National Communications Commission (NCC), citing Section 20(1) of Registration of Telephone Subscribers Regulations (TSR) 2011 had imposed a penalty of N200,000 for each unregistered but activated subscription medium, hence the initial fine of $5.2 billion. This was later reviewed downwards to $1 billion in June 2016 – in addition to mandatory listing.

    Would the telecommunications firm have agreed to sell its shares on the Nigerian bourse without the recourse to sanction? The development has since rendered the question academic. However, that this is now a done deal is certainly saying a lot for an entity that has resisted all previous entreaties to get listed on the Nigeria Stock Exchange despite contributing about 40 per cent to the group’s profits. Nigerians therefore cannot wait to see the process proceed apace. Much as we expect to see MTN Nigeria demonstrate good faith through the entire process, we expect to see the capital market regulators – the Securities and Exchange Commission (SEC) and the NSE demonstrate a matching dexterity.

    We must of course draw lesson from Ghana which insisted, ab initio, that a sizeable chunk of the shares be reserved for its citizen-investors. Unlike Ghana where the word seems to be that the citizens not only deserve a piece of the action with their officials going as far as incorporating the provision in the agreement for awarding the licence, here, our officials have been known to moan to no end about the unwillingness of multinationals to get listed on the local bourse. In the end, the local economy is not only worse for it in terms of the billions repatriated annually through transfers; the local bourse is denied a potential source of much vitality.

    Although mandatory, nothing of course says that the listing cannot be win-win for all the parties – if successful. First is the huge capital to be raked in – funds considerably cheaper compared with other sources, to upgrade services. Second, is also the factor of goodwill to be generated, particularly for a firm hitherto perceived by Nigerians as a wholly foreign – albeit, South African entity.

    Shedding the ‘foreign’ toga of an entity only interested in raking huge profits to the exclusion of the locals would certainly do the telecommunications firm a lot of good at this time. Moreover, for a company often accused – either rightly or wrongly – of sundry corporate infractions, the ensuing compliance with stock exchange rules on disclosure and corporate governance post-listing would certainly clear any lingering dark clouds over its activities.

    In the long run, the bourse as indeed the economy as a whole can only be better for it.

  • ‘Policeman framed me for robbery for denying him sex’

    ‘Policeman framed me for robbery for denying him sex’

    A 27-year-old trader, Mrs Victoria Amodu, Wednesday told an Ikeja High Court, Lagos that an Investigative Police Officer (IPO) at the Special Anti-Robbery Squad (SARS), Ikeja Division, demanded sex from her to release her from custody.

    Amodu, a mother of four, gave the testimony as a defence witness in her trial for alleged conspiracy and armed robbery, before Justice Kudirat Jose.

    The defendant, who denied the allegation, was arraigned alongside one Hammed Isiaka on a six-count charge of conspiracy to commit robbery and armed robbery, contrary to Section 295(2)(a) of the Criminal Law No 11 Laws of Lagos State, 2011.

    One of the charges reads, “Hammed Isiaka, Victoria Amodu and others now at large, on or about August 12, 2014 while armed with a pistol did rob one Elizabeth Moses of a cash sum of N35, 000 and a cheque of N1.4m.”

    However, while being led in evidence by her counsel, Nelson Onyejaka, Amodu told Justice Jose that she was unjustly arrested by the police on August 12, 2014 at Church Bus stop, Badagry, Lagos.

    She said she was selling bread at the bus stop when policemen raided the area, arrested her and others and bundled them into their truck, where they met some men who were already tied up.

    Narrating the incident, Amodu said: “I was arrested by the police while I was selling bread and taken to the station at SARS, Ikeja. An IPO (name not mentioned) there told me to call someone that would come for my bail. I called a neighbour, a lady that helps me look after my kids. When she arrived, the IPO said a woman could not sign my bail bond, which he put at N400,000.

    “I became worried because I didn’t know any man to call since I was no longer living with my husband and I was also new in Lagos. I decided to call my father but he refused coming to the station. He said since I was married he had no hand in anything concerning me.

    “I didn’t know what else to do at this time, so I started begging the IPO to let me go and take care of my kids since I didn’t commit any offence. The IPO took me outside the cell to a corner and said that I am a pretty lady and that if I submit myself to him, I would be freed. I got angry and shouted at him, asking why he would make such a statement to me. He immediately, dragged me back to the cell. Some others who were arrested that day were released after they paid money, though I don’t know how much they paid.

    “Nights after, the IPO brought out some case files and told me and others in the cell to sign them. He said that when we were done signing, we would be released. I agreed to sign the documents on the condition that he would not touch me. But the other men refused saying they couldn’t sign what they didn’t know.

    “The IPO immediately brought out his gun and threatened to shoot them if they didn’t sign and they fearfully signed it.

    “After signing the documents, we were all taken to a Magistrates Court and from there, to Kirikiri Prison.

    Amodu pleaded with the court to tamper justice with mercy and permit her to go home to cater for her children.

    During cross-examination by prosecution counsel, Mrs. Awosika, Amodu denied knowing the first defendant, Isiaka.

    She said she had never seen him before and only met him for the first time in court on the day of arraignment.

    Isiaka, a driver, who also testified while being led by his counsel, Mrs Olamide Amore-Akintoye, said he was arrested on his way from Seme border while carrying food items belonging to a customer.

    He said his car was impounded and taken to the station where he was locked up after he failed to pay for his release.

    Justice José adjourned till November 29 for adoption of final addresses.

  • Coronation to float IPO for N400m fixed income fund

    Coronation Asset Management Limited, the asset management arm of Coronation Merchant Bank Limited, has received regulatory approval to float an initial public offering (IPO) to raise N400 million for a new mutual fund.

    Regulatory document on the proposed IPO indicated that Coronation would be raising N400 million by offering 400 million units at a par value of N1 each to create its Coronation Fixed Income Fund. The Nigerian Stock Exchange (NSE), where the mutual fund is expected to be listed, has already approved the N400 million IPO.

    The latest approval came on the heels of earlier approval of two IPOs to create two mutual funds as part of efforts to develop its asset management business and provide the investing public with competitive investment opportunities.

    Under the first IPO, Coronation will be offering 1.5 billion units at a par value of N1 to raise N1.5 billion for its Asset Management Balanced Fund. The asset management firm will also be offering 200 million units at N1 par value in another balanced fund to raise N200 million.

    Mutual funds, otherwise known as collective investment schemes (CIS), are joint investment vehicles through which investors can pool funds and invest in chosen basket of securities under a professional management with a view to optimise returns and reduce risks.

    A mutual fund is usually categorised by the class of assets that forms the primary focus of its investments. Thus, there are equity funds, money market funds, bond funds, real estate funds, ethical funds and balanced funds, among others.

    Each investor becomes a co-owner, otherwise known as unit holder, in a mutual fund. Mutual fund usually has a professional fund manager that oversees the value creation functions of the fund and a trustee that ensures that the underlining agreements setting up the mutual fund are adhered to. Other professional parties include the registrar, who keeps custody of the register of members of the funds.

    With several retail investors at the receiving end of the stock market recession, mutual funds appear to be increasingly attractive investment vehicles for retail investors’ participation in the stock market.

    There are several competitive advantages that drive investors’ desires for mutual funds. These include the availability of the service of a professional investment manager, which provides full-time expert investment management that several retail investors might not be able to provide.

  • Why Zenith Bank suspended IPO

    Why Zenith Bank suspended IPO

    Most deposit money banks are anxious to place initial public offer (IPO) to raise fresh capital injection into the system. This is justifiably so considering the credit crunch which is assailing most sectors of the economy, including banks.

    Like most banks, Zenith Bank had initially announced plans to raise N100 billion fresh funds. But the management soon made a volte-face at its 26th Annual General Meeting (AGM) held in Lagos thus aborting the plan at the meeting.

    Expectedly, shareholders of the bank approved the request of the board to step down the plan to raise fresh capital.

    Justifying the suspension of the plan, Chairman of the bank, Mr. Jim Ovia, at the meeting said the bank decided to suspend the idea because of macro-economic challenges in the country and also that the time was not right for such scheme.

    The bank had expected market conditions to improve when it announced plans to seek approval for the funds last month, said Zenith’s Head of Investor Relations, Michael Anyimah, but the lender cancelled them due to the struggling economy.

    In its annual report, the bank said: “That the directors be and are hereby authorised to raise, whether by way of a public offering, rights issue or any other method(s) they deem fit, additional capital of up to N100 billion or its equivalent whether locally or internationally or a combination of both, through the issuance of shares, convertible securities or non-convertible securities, global depository receipts, medium term notes, loan notes, bonds and or any other instrument(s).

    “Whether as a standalone transaction or by way of a programme; unlisted or listed locally or internationally in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, at such dates and time and on such terms and conditions, including through a book building process or other processes all of which shall be determined by the Directors; subject to obtaining the approvals of relevant regulatory authorities.”

    During the year, the bank said it incurred some contraventions of the regulation of the Banks and Other Financial Institutions Act, 1991. In all, the bank paid a total of N16 billion as penalties for contraventions in the year under review.

    These include N2 billion penalty on returns of foreign currency transactions, N4 billion as penalty for contravening DMO Act of 2003 on lending to tiers of government and N10 billion as penalty for incomplete customers’ documentation.

    There were mixed reactions among shareholders of the bank on the decision not to go ahead with the offer.

    A shareholder activist and Chairman of the Progressive Shareholders Association of Nigeria, Boniface Okezie, said there was no crime in the decision of the bank to stand down its decision to raise the fund, as he added that it is better  that the bank did not go for it than for it to end in a disaster.

    “I think the decision of the bank should be respected. It is better that it did not go ahead with the offer than to lose out at the end. A bank like Zenith Bank cannot afford to fail at this time because they are the leader in the sector as of today. I will not dwell too much on the issue because it is both safe for the bank and the shareholders,” Okezie said.

    Meanwhile Shareholders of Zenith Bank Plc are smiling to the banks has the bank  approved final dividend of N55.573 billion, bringing the total dividend for the year ended December 31, 2016 to N63.422 billion. Lagos.

    While approving the dividend, the shareholders commended the board, management and staff for growing its profit after tax by 23 per cent from N105.531 billion in 2015 to N129.65 billion in 2016. The bank ended the year with gross total assets N4.739 trillion, up from N4 trillion in 2015.

    Addressing the shareholders, Ovia said despite the challenging operating environment, the bank was able to fully exploit the available opportunities to post the impressive results.

    According to him, in line with its commitment to delivering superior returns to its much-valued shareholders, the bank ensured that a good chunk of the profit is set aside for them.

    “In this regard, we have declared and paid you an interim dividend of 25 kobo per share in the course of 2016 financial year. We hereby propose a final dividend of 177 kobo per share. This brings the total dividend for the year ended December 31, 2016 to 202 kobo per share as against 180 kobo per share paid the previous year,” Ovia said.

    He stated that even in the face of a very challenging operating environment, Zenith Bank has maintained its culture of outstanding performance and industry leadership.

    “As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate. Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market,” he said.

    Echoing similar sentiments, Group Managing Director/Chief Executive Officer of Zenith Bank, Mr. Peter Amangbo said as an institution of well-primed people, the bank relied on a its pool of exceptional staff to make sound and timely decision and addressed issues in a manner that anticipated developments and demonstrated excellent understanding of the dynamics of the market and economy in 2016.

    He assured that “We shall continue to demonstrate extraordinary commitment to our customers while maintaining focus on all the areas fundamental to adding value to our partnership.”

    Looking ahead, he said although 2017 will come with its challenges, and opportunities, “but I am confident that our determination, resolve and rare commitment to customer s well as our adaptive ability will ensure resounding results.”

  • Med-View Airlines mulls IPO to raise funds

    Med-View Airlines mulls IPO to raise funds

    Med-View Airlines Plc plans to launch its initial public offering (IPO) in the second quarter of the year to raise new equity funds to expand its operations.
    Med-View Airlines on January 31, 2017 listed its entire issued share capital on the Nigerian Stock Exchange (NSE). A total of 9.75 billion ordinary shares of 50 kobo each were listed at N1.50 per share.
    Managing Director, Med-View Airlines, Alhaji Muneer Bankole, said the company would in the next three months float its IPO to raise additional funds and allow more investors to buy into the company.
    According to him, the airline would by April expand its operations to Francophone countries within the West African states.
    Bankole said the airline would expand its operations to Dakar, Senegal; Conakry, Guinea; and Abidjan, Cote D’Ivoire in the next two months, noting that the airline has already commenced, Lome, Togo route.
    “We are in the market not to do anything extraordinary but to let all Nigerians know that there is something to grow together. This is a private entity that starts from zero. The durable, profitable and safest business you can do is transport. To carry cargo from Lagos to Abuja is 45 minutes; London is six hours; even by ship you will be there for three months. It is the only way you can move people and communicate to the next neighbor,” Bankole said.
    He said the aim of the airline was to connect all the West African states before expanding its operations to Europe and America.
    According to him, the airline will also commence Lagos-Dubai route in April, which has been in pipeline for over two years while the Baltimore, Washington DC in United States will start soon.
    “We are increasing our financial capacity in the area of growth. We are discussing with partners to acquire more aircrafts that we will bring back home to be able to increase our capacity,” bankole said.

  • Real estate firm eyes N20b from IPO

    Authorities at the Nigerian Stock Exchange (NSE) have given the nod to a Lagos-based real estate company, Top Services Limited, to raise about N20 billion from its initial public offering (IPO).

    Top Services Limited plans to float an IPO of 20 million units for its Top Services Limited Real Estate Investment Trust (TSL REIT) at N1, 000 per unit.

    A regulatory document obtained by The Nation indicated that the TSL REIT will be listed after the IPO on the NSE.

    The company has already appointed First Ally Capital Limited and CardinalStone Partners Limited as joint houses to the IPO, while FSDH Securities Limited will act as stockbroker to the offer.

    The listing of TSL REIT is expected to boost the REITs sector at the NSE. Three REITs  already listed on the NSE are Skye Shelter Fund, Union Homes REIT and UPDC REIT. The three listed REITs currently have total market capitalisation of about N40 billion.

    A REIT provides investors with opportunity to indirectly invest in real estate without actively owning a property, thus providing a window for investors to tap into the acclaimed huge potential of the Nigerian housing sector.

    Many companies have recently indicated plans to raise funds through the capital market as companies struggle to reduce debts on their balance sheet and secure equity funds to support long-term growth plan.

    DN Meyer Nigeria Plc plans to raise about N218.62 million in new equity funds from existing shareholders in a move that will double the paid up share capital of the paint manufacturing company and raise total equity funds to above N900 million.

    DN Meyer Nigeria plans a rights issue of 291.49 million ordinary shares of 50 kobo each to shareholders on the register of the company as at Thursday September 8, 2016 at a price of 75 kobo. The provisional allotment will be done on the basis of one new ordinary share for one ordinary share held as at the close of register on September 8, 2016.

    Also, Livestock Feeds PLC has received NSE approval to raise about N1.1 billion new equity funds from existing shareholders. Livestock Feeds plans to undertake a rights issue of 1.0 billion ordinary shares of 50 kobo each at a price of N1.10 per share. The rights issue will be pre-allotted on the basis of one new ordinary share for two ordinary shares already held by the shareholder.