The Nation Newspaper

Tag: NSE

  • Flour Mills lists N20.11b bonds on NSE, FMDQ

    Flour Mills of Nigeria Plc, Nigeria’s largest flour-milling company, at the weekend listed two bonds on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.

    Flour Mills’ N10.11 billion, three-year, 15.50 per cent fixed rate senior unsecured bond due 2021 and N10 billion five-year, 16 per cent fixed rate senior unsecured bond due 2023 were admitted to the NSE and FMDQ. The bonds were issued under the company’s N70 billion bond issuance programme.

    The bond issues were strongly supported by the institutional investors and oversubscribed by 190 per cent within the price guidance. The proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

    Commenting on the listing, Chairman, Flour Mills of Nigeria, Mr John Coumantaros said the company was delighted to return to the capital markets with such a successful outing especially with the level of interest shown by investors.

    According to him, the response from the market vindicates the company’s decision to have taken this additional step in diversifying its financing options.

    “We are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited (“Stanbic BTC Capital”)as Lead Issuing House, along with ARM Securities Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, United Capital PLC and Zenith Capital Limited as Joint-Issuing Houses, on a highly successful transaction,” Coumantaros said.

    Group Managing Director, Flour Mills of Nigeria, Mr. Paul Gbededo, said the issues would help the company to achieve its strategic objective of sustaining its market leadership position with its foods and agro-allied businesses, while fostering its vision of feeding the nation everyday.

  • NSE gives shares, cash, computers to essay competition winners

    The Nigerian Stock Exchange (NSE) at the weekend rounded off its 2018 NSE Essay Competition with the presentation of shares, cash and computers to winners and their schools.

    Miss Deborah Lawrence of Good Shepherd School, Ajegunle Village, Atan-Ota, Ogun State, emerged the overall winner. Lawrence clinched the first position ahead of over 20,150 participants across the country, winning N500,000 scholarship for her university education, N250,000 equity investment and a laptop. Her school was also rewarded with a trophy, three desktop computers and a printer.

    Miss Ashiru Oluwalanaayo of Corona Secondary School, Agbara, Ogun State and Master Dominic Charles of GEC Comprehensive College, Ipaja, Lagos State, emerged first and second runners up respectively. Each of them also got a laptop, equity investment and scholarships for their university education. Their schools also got varying number of computers and trophies. Seven other laptops were given as consolation prizes to seven winners.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said the main goal of the the NSE Essay Competition, which is now in its 18th year, is to build a financially savvy generation by imbuing a culture of wealth creation among the youths.

    According to him, the competition serves as a platform that gives the Exchange the ability to view the perspectives of future leaders on key challenges relating to financial literacy, while providing opportunity to feel the pulse of the spread of financial inclusion in Nigeria.

    Onyema, who was represented by Head of Shared Services at the NSE,  Bola Adeeko, said the youth segment is often recognised as a priority target for financial education because the philosophy of catching them young remains a wise one.

    He, however, pointed out that financial literacy holds great value for all segments of the population and should not be limited to a certain age group as the benefits of a financially literate society are universal and its positive impact can be felt in the promotion of better livelihoods, economic growth, financial systems, and poverty reduction.

    “There is the need to build a platform that will help awaken the interest of our youths and buoy up students to learn and appreciate economic concepts, particularly as it concerns financial literacy and the significance of the capital market to the economy,” Onyema said.

    He noted that this year’s competition topic asked students to discuss “how technology can promote financial literacy and encourage investment habit among youths” as a way of getting future leaders to think about how to adopt technology as a veritable tool for building a financially savvy generation.

    In her keynote address, wife of Ogun State governor, Mrs Olufunso Amosun, who was represented by Mrs. Yemisi Durojaiye, commended the NSE for the initiative, which sought to bridge the gap between classroom learning and practical knowledge required for long-term personal financial responsibility for societal development.

    “It is also heart-warming to note that over 40,000 young people in more than 8,000 secondary schools across Nigeria have benefited from this completion,” Amosun said.

     

  • SEC, NSE, others for PEARL Awards

    The 2018 PEARL Awards will provide opportunities for capital market regulators and other key players in the economy to further interact on many developmental issues facing the capital market and the economy.

    Organisers of the Awards have confirmed that the event would be graced by the Acting Director-General, Securities & Exchange Commission, Ms. Mary Uduk, President, Nigerian Stock Exchange (NSE), Abimbola Ogunbanjo and elderstatesman, Ambassador Shehu Malami.

    Chairman, Senate Committee on Local Content, Senator Solomon Olamilekan, a Fellow of the Institute of Chartered Accountants of Nigeria as well as President, Chartered Institute of Stockbrokers of Nigeria, Mr. Ademola Adekoje, and President, Chartered Institute of Bankers of Nigeria, Dr. Uche Olowu, will also be among guests of honour.

    The event will also host chairmen, chief executives and top officials of major players in the capital market, captains of commerce and industry, regulators, diplomats and top government functionaries.

    Chairman, PEARL Awards’ Board of Governors, Dr Faruk Umar, said the award in the past 20 editions has grown in relevance and has become a major barometer for measuring the pulse of the Nigerian capital market.

    He stressed that the board and secretariat of PEARL Awards are pleased with the confidence reposed in the PEARL Awards by major stakeholders of the capital market  over the past more than two decades of rewarding corporate excellence with fairness, objectivity and integrity.

    President, PEARL Awards Nigeria, Mr Tayo Orekoya, said the 2018 edition is a major morale booster for firms whose effort in the post-recession Nigeria has kept key market index inching upwards, in spite of market and economic challenges.

    “There is no better time and platform for the performing organisations to be rewarded for wading through the low moments of the Nigerian economy than now and at PEARL Awards,” Orekoya said.

     

  • NSE lifts suspension on Thomas Wyatt, Union Dicon Salt

    The Nigerian Stock Exchange (NSE) has lifted suspension on trading in the shares of Thomas Wyatt Nigeria Plc and Union Dicon Salt Plc, after the two companies submitted their relevant financial statements.

    The NSE had earlier this month suspended trading on shares of six companies for failing to adhere to best corporate governance and extant post-listing requirements that require quoted companies to submit their periodic financial statements and reports within stipulated timelines.

    The suspended companies included DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc and Unic Diversified Holdings Plc.

    The Exchange stated that Thomas Wyatt Nigeria and Union Dicon Salt have submitted their audited financial statement for the year ended March 31, 2018, and unaudited financial statement for the period ended March 31, 2018 respectively to the Exchange.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

     

  • NSE suspends trading on Skye Bank shares

    The Nigerian Stock Exchange (NSE) on Friday officially notified the investing public that Skye Bank Plc shares would be suspended from trading on Sept. 24.

    The exchange gave the notice in Lagos in a statement by Mr Olumide Orojimi, Head, Corporate Communications and Mr Godstime Iwenekhai Head, Listings Regulations.

    NSE said in the statement that the action was taken following the recent regulatory action of the Central Bank of Nigeria (CBN) revoking the banking license of Skye Bank.

    The News Agency of Nigeria (NAN) reports that the exchange said that the decision was pursuant to the “Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange (Issuers’ Rules).”

    It stated that further developments would be communicated as appropriate in due course.

    CBN has revoked the banking licence of the Bank, and transferred its assets and liabilities to a newly licensed bridge bank called Polaris Bank.

    Mr Godwin Emefiele, CBN Governor, said at a news conference in Lagos that the decision was due to failure of its shareholders to recapitalise the bank.

    Emefiele, however, said that the purpose of the CBN’s intervention in Skye Bank on July 4, 2016 had been achieved.

    He said that the focus of the action then was to save depositors’ funds and to ensure that the bank continued as a growing concern, being a systemically important bank.

    “Part of our intention was also to stem the imminent job losses to staff if a liquidation option had been adopted.

    “These objectives have been fully achieved and the bank has been able to meet customer obligations, having curtailed the liquidity haemorrhage and restored depositor confidence.

    Indeed, the bank’s performance has improved considerably compared to the pre-July 2016 era”, he said.

    Emefiele said that the result of its examinations and forensic audit of the bank showed that the bank required urgent recapitalisation.

    According to him, the bank can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.

    He added that the bank’s shareholders were unable to recapitalise it.

    “As a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation (NDIC), we have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye bank.

    “The strategy is for the Asset Management Company of Nigeria (AMCON) to capitalise the bridge bank and begin the process of sourcing investors to buy out AMCON,” Emefiele said.

    He, however, assured all depositors that under the arrangement, their deposits shall remain safe and that normal banking services shall continue in the new bank on Sept. 24.

    The CBN governor said te arrangement was to enable customers to transact their businesses seamlessly.

    He said that all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank.

    NAN also reports that NDIC has sold Polaris Bank to the Asset Management Corporation of Nigeria (AMCON) with the mandate to stabilise the bank as well as return it to profitability for the purpose of selling it to interested Investors.

    Consequently, AMCON will inject N786 billion into Polaris Bank to bring it’s net value to zero. (NAN)

  • MTN repatriation: NSE reviews Stanbic IBTC, Diamond Bank governance

    The Nigerian Stock Exchange (NSE) and other stakeholders have launched an engagement process to review the compliance of Stanbic IBTC Holdings Plc and Diamond Bank Plc to high-level corporate governance standards expected of top-rated quoted companies.

    The review was sequel to the fines imposed on Stanbic IBTC Bank and Diamond Bank by the Central Bank of Nigeria (CBN) for complicity in alleged illegal repatriation of $8.1 billion by MTN Nigeria Communications Limited.

    Stanbic IBTC Holdings Plc-the parent company of Stanbic IBTC Bank and Diamond Bank were among 35 companies that were awarded the Corporate Governance Rating System (CGRS) certification in February 2018. Introduced into the capital market in 2012 and launched in 2014, the CGRS is a joint initiative between the NSE and the Convention on Business Integrity (CBi).

    The CGRS was designed to rate quoted companies and their directors on corporate governance practices. The CGRS was the underlying variable for the creation of the NSE Corporate Governance Index (NSE CG Index). The NSE CG Index declined by 1.32 per cent yesterday, almost a triple of the overall average decline of 0.48 per cent for the entire equities market.

    The Steering Board of the CGRS yesterday stated that it had taken note of the fines and controversies around the alleged illegal capital repatriation of $8.1billion for MTN Nigeria Communications Limited by four banks, including Stanbic IBTC Bank and Diamond Bank.  Executive Director, Regulation, Nigerian Stock Exchange (NSE), Tinuade Awe, is the chairman of the CGRS Steering Board.

    The board noted that “regulatory compliance formed a major part of the requirement for the award of the CGRS certification” and as such it has launched an engagement process with the affected banks.

    “Consequently, the Steering Board is engaging with Stanbic IBTC Holdings Plc and Diamond Bank Plc on this matter, and will inform the investing public on the outcome of its engagement at a future date,” CGRS stated.

    To be certified, the CGRS rates quoted companies through three processes including independent verification; self – assessment by the company; certification of director awareness of their fiduciary duties; and a corporate integrity assessment where perceptions of actual company behaviour are sought from internal and external stakeholders.  A score of 70 percent and above for both the company and individual directors is required for certification.

    At the award ceremony for the CGRS certification, Awe had affirmed that the companies successfully passed the rating test, having scored the required pass mark of 70 per cent.

    She pointed out that the aim of the CGRS rating was to improve the level of corporate governance of listed companies noting that the rating is a developmental index that will help to boost the company’s image and better cooperation when it needs to transact with foreign partner.

    She explained that the self assessment is in three stages which is corporate compliance with its component indicator covering five categories, business ethics and anti corruption, internal and external audit and control, shareholder and stakeholder rights, board structure and responsibilities, transparency and disclosure.

  • Paints and Coatings Manufacturers delists shares from NSE

    The Nigerian Stock Exchange (NSE) has delisted the entire issued share capital of Paints and Coatings Manufacturers Nigeria (PCMN) Plc, concluding the voluntary delisting of the paints and chemical company.

    The NSE operates two delisting windows-voluntary and compulsory delisting. Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.

    Under the compulsory delisting window, the NSE may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.

    Shareholders of PCMN had earlier this year approved sub-joined resolutions that would see the relapse of the company to a private limited liability company and the delisting of its shares from the NSE.

    A Federal High Court had directed the company to convene a court-ordered meeting on February 15, 2018 in Lagos during which shareholders deliberated and voted to approve a scheme of arrangement for the change in the status of the company and the delisting from the NSE. A new company-Paintcom Investment Nigeria Limited is proposed to emerge after the delisting.

    The Asset Management Corporation of Nigeria (AMCON) had sold the fourth largest equity stake in PCMN to Bizfeat Ventures Limited, a relatively unknown firm. AMCON, the bad-debt resolution corporation floated by the government, transferred its 7.4 per cent equity stake in PCMN to Bizfeat Ventures through a negotiated cross deal at the NSE.

    The block divestment involved transfer of a total of 58.66 million ordinary shares of 50 kobo each held by AMCON to Bizfeat Ventures at a negotiated price of N1.05 per share.

  • UPDC, C & I Leasing list N11.36b bond on NSE

    UACN Property Development Company (UPDC) Plc and C & I Leasing Plc have listed their newly issued corporate bonds valued at N11.36 billion on the Nigerian Stock Exchange (NSE).

    UPDC, a subsidiary of UAC of Nigeria (UACN) Plc, listed the N4.355 billion 16 per cent Series 1 Senior Guaranteed Fixed Rate Bond Due 2023 under its N20 billion Bond Issuance Programme.

    The listing by way of introduction provided bondholders opportunity to trade on their investments and allow new investors to participate in the issue.

    UPDC had offered 4.355 million units of the 16 per cent bond at N1,000 per unit. The issue was fully subscribed.

    C & I Leasing listed 7.0 million units of its 16.54 per cent Senior Secured Series 1 Bond. It had offered 7.0 million units at N1,000 per units.

    Companies have increasingly turned to corporate debt issue to bridge the gap between the apathy in the primary equities market and funding requirements for corporate growth.

    UPDC, for instance, has been leveraging on debts to fund its projects, after a slowdown in real estate market and stock market recession combined to shrink access to long-term capital.

  • NSE suspends Adonai Stockbrokers

    THE Nigerian Stock Exchange (NSE) has suspended Adonai Stockbrokers Limited for alleged fraudulent sale of investor’s shares.

    A regulatory report indicated that the company was suspended due to several violations, including rules on “unauthorised sale of shares belonging to an investor”.

    It was also indicted of “unauthorised use of client’s funds” and “segregation of client’s funds”. The firm was also alleged to have engaged in other prohibited practices.

    NSE has tightened regulatory framework and sanction regime to deter market abuses and safeguard market integrity. The NSE recently started the implementation of newly amended rules aimed at tightening the noose on unauthorised sale and transfer of shares by unscrupulous stockbroking firms and traders.

    Under the amended rules, the Exchange could withdraw the dealing licence of any erring stockbroking firm and trader as well as impose fines not less than N1 million on any offender.

    According to the rule, no dealing member shall sell or transfer any securities without the authorisation of the owner.

    “A dealing member that has sold or transferred any securities without the authorisation of the owner shall not be permitted to keep any benefits accruing from such transaction, including but not limited to bonuses, rights, commissions, cash dividends, capital appreciation, and any profit accruing therefrom whatsoever,” the rule stated.

    Any dealing member that sells or transfers securities without the authorisation of the owner shall be required to buy back the securities along with any accrued benefits within a period of 14 business days.

    Besides, where the unauthorised sale transaction is worth N5 million and below in value, the erring stockbroking firm will be liable to pay a fine of N1 million or three times the value of the sale or transfer, whichever is higher, and N5,000 for every day from the day on which the dealing member is required to buy back the securities by the Exchange until the day the dealing member completes buying back the shares for the owner.

    Where the illegal sale transaction is higher than N5 million in value or the dealing member has engaged in such unauthorised sale, or transfer of securities on a previous occasion, it shall have its dealing licence withdrawn by the council of the Exchange and shall in addition be liable to pay a fine of N5 million or three times the value of the sale or transfer, whichever is higher and N5,000 for every day from the day of the sanction until the day the dealing member completes buying back the shares for the owner.

    But where the dealing member is unable to buy back the sold, or transferred shares within the stipulated 14 business days period as a result of stock unavailability or illiquidity, the dealing member shall immediately notify the Exchange of this fact in writing and the Exchange shall determine the best monetary value in the circumstances to be paid to the owner.

    Also, NSE has also started implementing its “naming and shaming” rule, which empowers the Exchange to notify the public of suspensions and expulsions of any stockbroking firm.

    According to the rule, the Exchange shall have power to publish in the local newspapers or circulars to dealing members and other members of the Exchange, the name of any member expelled or suspended by the Exchange, or any authorised clerk whose registration has been revoked by the Exchange, and also to publish such expulsion, suspension or revocation in any other way it may deem fit.

     

  • NNPC’ to list 40% of shares on NSE

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said 40 per cent of the shares of the Corporation would be floated on the Nigerian Stock Exchange (NSE) when the Petroleum Industry Governance Bill (PIGB) gets  Presidential Assent.

    Baru spoke yesterday in Lagos at the 2018 annual conference of the Association of Energy Correspondents of Nigeria (NAEC). In his keynote address titled: “PIGB: Emerging Issues and Concerns,” he highlighted the key thrusts of the PIGB including making the national oil company commercially driven hence the need to raise money from the stock market.

    Represented by the Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Rowland Ewubare, the GMD said: “The PIGB is focused on the key governing institutions in Nigeria’s oil and gas industry and aims to separate the Regulatory, Policy and Commercial roles of public sector agencies and allocate respective roles to agency to properly positioned to perform them.

    “For the NNPC, the PIGB requires the minister to within six months after its enactment, take such steps as are necessary under the Companies and Allied Matters Act (CAMA) to incorporate the two entities – the Nigerian Petroleum Assets Management Company (NPAMC) and the Nigerian Petroleum Company (NPC) as companies limited by shares which will be vested with certain liabilities and assets of the NNPC.

    “The NPC shall be an integrated oil and gas company operating as a fully commercial entity across the value chain. Essentially, it shall be responsible for all assets currently held by NNPC except the production sharing contracts (PSCs). The NPC shall be a limited liability company registered under CAMA.

    The initial shares shall be held by the Ministry of Petroleum Incorporated (40 per cent), the Ministry of Finance Incorporated (40 per cent) and the Bureau of Public Enterprises (20 per cent). However, 10 per cent and an additional 30 per cent of the shares of the company shall be floated on the Nigerian Stock Exchange between five years and 10 years from incorporation respectively.”

    for the significant cash call build up.

    Baru said the power of issuance, modification, amendment, extension, suspension, review, cancellation and reissuance, revocation and/or termination of award licenses/leases has been transferred to the commission in line with the new global trend, adding the PIGB has provided a legal framework and expanded role for the Department of Petroleum Resources.

    Also the Chairman of the conference, Deputy Managing Director, Deepwater District, Total E&P Nigeria limited, Mr. Ahmadu-Kida Musa, assured that the company will by the last quarter of this year add 200,000 barrels of oil per day to the nation’s oil production.