The Nation Newspaper

Tag: NSE

  • NSE to use blockchain, new technologies for capital raising

    The Nigerian Stock Exchange (NSE) is exploring the use of innovative technologies like Blockchain and Distributed Ledger Technology (DLT) as means of raising capital as part of the efforts to align the capital market with emerging financial technologies (fintech).

    Blockchain and DLT allow transfer and sharing of digital data across multiple sites without a central storage or administrator.

    NSE Chief Executive Officer Mr Oscar Onyema said the Exchange is considering creating alternative and innovative platforms for capital raising through the use of new technologies such as Blockchain and DLT.

    He said fintech offers opportunity to deepen the capital market and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services while simultaneously unlocking efficiencies in product and service delivery for financial institutions as well as increasing transparency and resilience of the Nigerian capital market and larger financial ecosystem.

    Onyema pointed out that while the NSE is focused on delivering on its mandate to be Africa’s Preferred Exchange Hub, the bigger picture for the Exchange is to create a dynamic marketplace that fuels growth and empowers people towards excellence in business and ventures.

    He said the Exchange has also demonstrated its supports for fintechs and start-ups with the introduction of the growth board of the Exchange, which caters for companies with high growth prospects, especially fintechs emerging from venture capital management to a more mature management that would require public investment and corporate consolidation.

    He added that with the support from the Exchange, companies with high growth potential will be able to leverage public finance for growth and expansion.

    Onyema, who spoke at a fintech event hosted by the NSE, said the theme of the event: Growth Funding and Strategic Capital Raise – Extending Financial Inclusiveness through the Capital Market” is of particular interest to the Exchange due to its connection to its core function as a hub for accessing capital.

    According to KPMG’s “2018 Global Analysis of Investment” equity investment into global FinTech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017; and has continued to gain traction.

    “The global picture of capital flow into fintechs especially in emerging markets is proof that FinTechs are important economic catalysts in the 4th Industrial Revolution. Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years,” Onyema said.

  • NSE to engineers: form consortia to bridge infrastructure gap

    The Chairman, Nigerian Society of Engineers (NSE), Lagos State branch, Musliudeen Agoro, has urged engineers to form consortia to handle big projects and help bridge Nigeria’s infrastructure gap.

    Agoro made the call in an interview in Lagos.

    Last year, President Muhammadu Buhari signed an Executive Order on local content to ensure that jobs that could be done by indigenous professionals were not given to foreign firms.

    Agoro said the Executive Order empowers engineers, suppliers and  contractors to display their expertise.

    He, however, called on the government to back Nigerians to enable the engineers to secure projects.

    “The signing of the Executive Order was very encouraging, however, if there is no full support and backing from the government, it will be difficult for Nigerian local engineers to lead in execution of projects amid foreign contractors,” he said.

    He said though there were consulting engineers in the country, they were just a few.

    He suggested that where  engineers did not have the expertise, they could partner  with their foreign firms.

  • MTN lists today at NSE

    MTN Nigeria Communications Plc said it has secured the requisite regulatory approval to list its shares on the Nigerian Stock Exchange (NSE) today.

    In a statement, the telco said it is “pleased to announce that it has received approval to list on the Premium Board of The Nigerian Stock Exchange (NSE). The listing is set to proceed on 16 May 2019 and will be done by way of an introductory listing.

    Read also: MTN Nigeria to add N1.84tr to Nigerian equities

    “The listing by introduction means that the shares of existing MTN Nigeria shareholders will be listed without an additional public sale of shares. From this point, all MTN Nigeria shareholders will be free to trade their shares on the NSE. ”

    Its CEO, Ferdi Moolman confirmed the approval and listing date.

    He said: “It gives me great pleasure to confirm that the official listing via introduction of MTN’s shares on the NSE will take place on Thursday May 16.

  • NSE grants First Aluminium’s voluntary delisting

    Authorities at the Nigerian Stock Exchange (NSE) have conceded a request for voluntary delisting by First Aluminium Nigeria Plc, signaling the end of 27 years of trading on the shares of the aluminium manufacturing company.

    A document obtained by The Nation indicated that the NSE has approved the application for voluntary delisting filed by First Aluminium Nigeria.

    With the approval of the delisting, the NSE will today place the shares of the company on full suspension preparatory to the delisting of the entire issued share capital of First Aluminium Nigeria from the Daily Official List of the Exchange. On full suspension, there will be neither trading nor movement of price of the shares of the company.

    In a circular on the full suspension of trading, the Exchange stated that the suspension was in “preparation for the voluntary delisting of the issued share capital of First Aluminium Nigeria”.

    “In view of the above, the shares of the company will be placed on suspension effective, Wednesday, 15 May 2019,” NSE stated. The date for the final delisting will soon be announced by the Exchange. First Aluminium Nigeria was listed on the NSE in 1992.

    The board of directors of First Aluminium Nigeria said the aluminium company opted to delist its shares from the NSE because of inactivity on the shares of the company and inability of the current listing to help in realising the corporate objectives of the company.

    Read also: 3m retail investors in Nigeria, says NSE

    However, the NSE had sanctioned the company twice in 2018 and 2019. First Aluminium was fined N476.280 each in 2018 for unauthorised publication of notice of annual general meeting (AGM) and in 2019 for non-dispatch of the notice of AGM and annual reports to shareholders 21 days before the date of the meeting.

    In a statement on the voluntary delisting, the company stated that the purpose for listing was to raise capital as well as provide liquidity to its shareholders but the current illiquidity nature of the market has rendered this primary corporate objective unattainable for the company.

    According to the company, over the last 12 months, there has been a significant fall in average daily trading volumes to 2,918 shares between July 2017 and June 2018 and further dip to 2,816 shares between July 2018 and December 2018.

    “Neither the company nor any shareholder is benefiting from the continued listing on the NSE. Furthermore, rationalisation of operational expenses to support the company’s business and to meet the needs of various stakeholders as the attendant cost required to comply with its listing requirements including filing fees, penalties or sanctions, are not commensurate with the benefits to the company,” First Aluminium stated.

    ALUCON Holdings SA, the majority core investor that holds about 75.48 per cent equity stake in First Aluminium Nigeria, is offering to buy out willing minority shareholders. Minority shareholders hold about 24.52 per cent equity stake in the company. ALUCON Holdings is offering to pay 55 kobo per share. Alternatively, shareholders can trade their shares on the NSE. However, a shareholder that desires to remain a shareholder of an unlisted First Aluminium Nigeria Plc shall be free to do so.

    According to the company, over the past seven years, there have been little or no trading activity on the shares held by the minority shareholders while the share price was stuck at 50 kobo for about six years. It has since dropped further below nominal value.

    “Shareholders are not benefitting from the continued listing as they are not getting exit opportunities and their investments have been locked up, thereby finding it difficult of their shareholding. Neither the company nor its shareholders have benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value,” First Aluminium stated.

    The company noted that the voluntary delisting will offer exit opportunities to shareholders who do not wish to remain in an unlisted public company.

    Following a resolution by the board of directors of the company on August 08, 2018, shareholders of First Aluminium Nigeria had at the annual general meeting on September 25, 2018 approved the voluntary delisting of the entire issued share capital of 2.11 billion ordinary shares of 50 kobo each.

     

  • NSE plans corporate charity to fight cancer

    The Nigerian Stock Exchange (NSE) has concluded arrangements to hold the 6th edition of its NSE Corporate Challenge in continuation of the Exchange’s efforts to support the fight against cancer in Nigeria.

    Instituted in 2014, the NSE Corporate Challenge is a one-d ay competitive and fun-filled five-kilometre walk, jog and run event designed to create awareness on early detection and raise funds to support the fight against cancer in Nigeria. The day’s activities will also include dance, aerobics, music and entertainment. Winners in the various race categories will be recognised at the medal presentation ceremony.

    The 2019 edition, scheduled for Saturday, July 6 in Lagos, will bring together participants from listed and non-listed companies, dealing member firms, government institutions and other non-commercial organisations; as well as celebrities and other notable Nigerians to support the fight against cancer.

    REad also: MTN set for NSE listing

    Head of Shared Services Division, Nigerian Stock Exchange (NSE), Mr. Bola Adeeko, noted that the NSE has in the past five years taken a leadership position in raising cancer awareness and increasing advocacy, leveraging its access to a vast network of employees and clients of listed companies, dealing member firms, well-meaning individuals and other stakeholders.

    He said maintaining a healthy lifestyle through diet and frequent exercise has been proven to be an effective approach to reduce the risk of cancer, the reason NSE has chosen sports as a vehicle to raise awareness and advocate for change.

     

  • SAHCO lists shares on NSE

    Skyway Aviation Handling Company (SAHCO ) Plc yesterday listed its entire paid up share capital of 1.35 billion shares on the Nigerian Stock Exchange (NSE). The shares were listed at N4.65 per share.

    Managing Director, Skyway Aviation Handling Company  (SAHCO) Plc, Mr Basil Agboarumi, said the company decided to list on the NSE in line with transaction agreements it had with the Bureau of Public Enterprises  (BPE) when undergoing the privatisation process.

    He said the listing will give Nigerians the opportunity to participate in the company’s growth story.

    “The listing will also improve the liquidity and tradability of the company’s shares, increase the company’s visibility and credibility in the Nigerian market and beyond,” Agboarumi said.

    He added that the listing would also broaden the company’s access to capital in order to fund its future growth initiatives.

    Agboarumi said the key investment highlights that would attract investors were the company’s sound business model and scalable franchise, strong brand name and reputation, best-in-class facilities and experienced management team with deep expertise and competence.

    He stated that the future strategy of the company to grow was to expand service offerings, enter into strategic alliances and partnerships, increase customer lifetime value, develop the skills of employees and manage cost.

    Chief Executive Officer, Nigerian Stock Exchange ( NSE ), Mr Oscar Onyema, said SAHCO was the first company under the  last privatisation programme to successfully finalise its listing on the NSE.

    He described the company as a good example to other companies.

    Onyema, who was represented by Executive Director, Regulations, Nigerian Stock Exchange (NSE), Ms Tinuade Awe, said SAHCO would be adding N6.29 billion to the market capitalisation of the equities market.

    He said the listing of SAHCO on the NSE showed the confidence the company has in the exchange.

  • NSE to use blockchain, new technologies for capital raising

    The Nigerian Stock Exchange (NSE) is exploring the use of innovative technologies like Blockchain and Distributed Ledger Technology (DLT) as means of raising capital as part of the efforts to align the capital market with emerging financial technologies (fintech).

    Blockchain and DLT allow transfer and sharing of digital data across multiple sites without a central storage or administrator.

    NSE Chief Executive Officer Mr Oscar Onyema said the Exchange is considering creating alternative and innovative platforms for capital raising through the use of new technologies such as Blockchain and DLT.

    He said fintech offers opportunity to deepen the capital market and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services while simultaneously unlocking efficiencies in product and service delivery for financial institutions as well as increasing transparency and resilience of the Nigerian capital market and larger financial ecosystem.

    Onyema pointed out that while the NSE is focused on delivering on its mandate to be Africa’s Preferred Exchange Hub, the bigger picture for the Exchange is to create a dynamic marketplace that fuels growth and empowers people towards excellence in business and ventures.

    He said the Exchange has also demonstrated its supports for fintechs and start-ups with the introduction of the growth board of the Exchange, which caters for companies with high growth prospects, especially fintechs emerging from venture capital management to a more mature management that would require public investment and corporate consolidation.

    He added that with the support from the Exchange, companies with high growth potential will be able to leverage public finance for growth and expansion.

    Onyema, who spoke at a fintech event hosted by the NSE, said the theme of the event: Growth Funding and Strategic Capital Raise – Extending Financial Inclusiveness through the Capital Market” is of particular interest to the Exchange due to its connection to its core function as a hub for accessing capital.

    According to KPMG’s “2018 Global Analysis of Investment” equity investment into global FinTech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017; and has continued to gain traction.

    “The global picture of capital flow into fintechs especially in emerging markets is proof that FinTechs are important economic catalysts in the 4th Industrial Revolution. Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years,” Onyema said.

  • Why we want to delist our shares from NSE, by First Aluminium

    The board of directors of First Aluminium Nigeria Plc yesterday explained that the aluminium company is seeking to delist its shares from the Nigerian Stock Exchange (NSE) because of inactivity on the shares of the company and inability of the current listing to help in realizing the corporate objectives of the company.

    In a statement on the voluntary delisting, the company stated that the purpose for listing was to raise capital as well as provide liquidity to its shareholders but the current illiquidity nature of the market has rendered this primary corporate objective unattainable for the company.

    According to the company, over the last 12 months, there has been a significant fall in average daily trading volumes to 2,918 shares between July 2017 and June 2018 and further dip to 2,816 shares between July 2018 and December 2018.

    “Neither the company nor any shareholder is benefiting from the continued listing on the NSE. Furthermore, rationalization of operational expenses to support the company’s business and to meet the needs of various stakeholders as the attendant cost required to comply with its listing requirements including filing fees, penalties or sanctions, are not commensurate with the benefits to the company,” First Aluminium stated.

    ALUCON Holdings SA, the majority core investor that holds about 75.48 per cent equity stake in First Aluminium Nigeria, is offering to buy out willing minority shareholders. Minority shareholders hold about 24.52 per cent equity stake in the company. ALUCON Holdings is offering to pay 55 kobo per share. Alternatively, shareholders can trade their shares on the NSE. However, a shareholder that desires to remain a shareholder of an unlisted First Aluminium Nigeria Plc shall be free to do so.

    According to the company, over the past seven years, there have been little or no trading activity on the shares held by the minority shareholders while the share price was stuck at 50 kobo for about six years. It has since dropped further below nominal value.

    “Shareholders are not benefitting from the continued listing as they are not getting exit opportunities and their investments have been locked up, thereby finding it difficult of their shareholding. Neither the company nor its shareholders have benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value,” First Aluminium stated.

    The company noted that the voluntary delisting will offer exit opportunities to shareholders who do not wish to remain in an unlisted public company.

    Following a resolution by the board of directors of the company on August 08, 2018, shareholders of First Aluminium Nigeria had at the annual general meeting on September 25, 2018 approved the voluntary delisting of the entire issued share capital of 2.11 billion ordinary shares of 50 kobo each. First Aluminium Nigeria was listed on the NSE in 1992.

    The voluntary delisting will become effective upon the obtainment of the written approval of the NSE.

     

  • Lawyer seeks to stop MTN’s stock market listing

    A Lagos Lawyer Dr. Charles Mekwunye  has asked the Securities and Exchange Commission (SEC) to stop telecoms giant, MTN from listing its shares on the Nigerian Stock Exchange (NSE).

    In a March 18 letter, Mekwunye, of Charles Mekwunye and Co, stated that MTN could not list its shares on the market because of a suit before the Supreme Court concerning the “massive” divestment of its assets.

    The letter claimed that MTN had been unfair to the Nigerian public and regulators by allegedly not disclosing the pendency of a civil matter over its shares when it recently announced its proposed initial public offer.

    In the letter to SEC, Mekwunye said: “We are disappointed that you have refused and/or failed to call MTN to order in the light of recent publications relating to its proposed Initial Public Offer (IPO) without any reference whatsoever to the appeal pending before the Supreme Court involving the massive divestment of its assets.

    “We consider the move by MTN as unfair, misleading, and a calculated attempt as usual to defraud the Nigerian economy and the Nigerian investing public.

    “Please be advised that under Nigerian law and jurisprudence, MTN cannot disrespect the Supreme Court by interfering with the subject matter of litigation before the apex court in the land.”

    Mekwunye, in 2008, sued MTN, Lotus Capital and Stanbic IBTC Asset Management, IHS Holding LTD and INT Towers Ltd at the Federal High Court for alleged breach of contract in the divestment of MTN assets.

    Mekwunye claimed at the lower court that MTN, through its appointed nominee, Stanbic IBTC Asset Management and LOTUS Capital, defaulted in a share investment agreement with him.

    He urged the court, to restrain MTN from listing its shares on the stock market pending the determination of the suit.

    Justice Mojisola Olateru, while ruling on a preliminary objection raised by MTN on the competence of the suit,  asked parties in the suit to explore the arbitration clause embedded in the contract.

    Dissatisfied with the ruling of the lower court, Mekwunye filed a motion on notice on February 26, 2018 at the Court of Appeal.

    He argued that an arbitration clause in agreement between him and MTN cannot be used to determine the suit involving IHS Holdings Ltd and INT Towers Ltd who are not parties to the arbitration clause.

    The Court of Appeal, in its ruling, also asked parties in the suit to pursue arbitration earlier pointed out by the lower court.

    Still not satisfied with the appellate court’s ruling, Mekwunye approached the Supreme Court, insisting that the crux of the matter is the failure of the respondents to list MTN shares on NSE in 2011 as agreed by parties and that until the suit is properly determined, MTN ought not to be allowed to list its shares at the stock market.

  • NSE tightens rules on banks’ insider dealings

    The  Nigerian Stock Exchange (NSE) has launched a comprehensive review of its rules to block loopholes being exploited for surreptitious trading in shares by directors and other insiders of quoted companies.

    The review, which aims at tightening disclosure requirements for price-sensitive information and insiders’ dealings, includes a specific direction on disclosure of directors’ dealing in their own shares of the company and greater investigative mandate that enables the Exchange to track history of such transactions.

    Sources told The Nation at the weekend that the review might not be unconnected with growing concerns over surreptitious trading by directors of banks in their shares, without public filing of such transactions. Some commercial banks had shown considerable transactions on the shareholdings of incumbent directors.

    A source said while the proposed amendments build on recent reviews by the Exchange, the immediate trigger appeared to be recent transactions on their shareholdings by directors of banks.

    The draft on proposed amendments specifically requires that in case of directors’ dealing in their o shares in the company, or engaging in any purchase of shares of the company, the company shall after being notified of the transaction, immediately, and in any event not later than 24 hours after becoming aware, file the full details of the transaction on the NSE’s Issuers’ Portal. The NSE’s Issuers’ Portal is used for direct dissemination of information by quoted companies to the market.

    The company is required to fully disclose transactions on directors’ shares including indirect and indirect shareholdings, the name of the director and or any related entities, as well as the counterparties and the date on which the transaction was effected.

    Besides, a quoted company is expected to establish securities trading policy, which among others, mandates all directors, persons discharging managerial responsibility and persons closely connected to them such as wives and children of directors as well as other insiders such as professional advisers and contractors to notify the company through the company secretary of any transaction conducted on their own shareholdings in the company within two business days from the transaction settlement date. When the new rules take effect, the company will also now be required to maintain a record of such transactions.

    According to the proposed rules, all quoted companies and other issuers shall keep written and other auditable forms of evidence of all transactions in their securities by their insiders, all information liable to be disclosed to the Exchange under its rules, and retain such records for a period of not less than six years.

    The companies will also be expected to make records or information on insiders’ transactions available to the Exchange for inspection from time to time as well as cooperate fully and promptly with all inspections or investigations conducted by the Exchange by responding to all enquiries by the Exchange promptly through sharing of information, documents and details.

    Besides, the NSE is considering a wider scope of information that must be disclosed on an immediate basis by a quoted company or any other issuer. As against existing rules that require companies to disclose immediately all information on any material circumstance likely to affect their financial conditions, the proposed amendments widen the scope of immediate disclosure to include “all price-sensitive information”.

    The new amendments seek to include financial liquidity issues, restatement of a previously published financial statement, operational or compliance related issues regarding any regulatory infractions resulting in any penalty, monetary or otherwise that may affect the company’s license or operations and litigation and dispute with a material impact such as winding up of the company within the definition of price-sensitive information that must be disclosed on an immediate basis. However, the company must obtain the approval of the Exchange before publishing such information.

    The proposed amendments also expand the scope of notification on board of directors’ meeting to include any meeting where interim or audited financials will be considered as well as other price-sensitive information. Such notice must reach the Exchange seven days ahead compared with the existing requirement of 14 days.

    Existing designated price-sensitive information include changes in the directorate; death, resignation, dismissal or appointment of a principal officer, change in the accounting year, annual and quarterly reports, new capital raising, mergers and acquisitions and alteration in Memorandum or Articles of Association, profit warnings or a change in the financial forecast or expectation, restructuring exercise or changes in the capital structure, takeover, tender offers, divestments, proposed change in the business model or general character or nature of the business of the company or of the group, major new developments in the company’s sphere of activities including major new products, contract awards and expansion plans;, change in voting control or in beneficial ownership of the securities carrying voting control, items of unusual or non-recurrent nature, and any other information necessary to enable shareholders to appraise the true position of the company and to avoid the establishment of a false market in the shares of the company.