Home Tags Posts tagged with "NIGERIAN EXCHANGE LIMITED"
Tag:

NIGERIAN EXCHANGE LIMITED

BusinessEconomyFinance & ServicesNigeriaOil & Gas

Investors dump shares in exchange’s alternative Securities Market board

by Radarr Africa
written by Radarr Africa

Following their weak corporate earnings, investors have shunned listed companies on the Nigerian Exchange Limited’s Alternative Securities Market Board.

A total of four companies comprising Capital Oil Plc, Rak Unity Petroleum Company Plc, Juli Plc, and Smart Products Nigeria Plc are listed on the ASeM with severe economic headwinds playing a critical impact on earnings of the companies on the Board declared on the NGX.

The ASeM is a specialized board for emerging businesses: small and mid-sized companies with high growth potential seeking to access the capital market.

In the 10 months of 2022, the stock price of three companies on the ASeM board traded flat while Juli Plc’s stock price depreciated. As Capita Oil’s price traded flat at N0.20 between January and October of 2022, the price of Rak Unity Petroleum Company also remained at N0.30.

For Juli, its stock price depreciated to N0.79 as of October 31, 2022, from N0.91 per share it opened for trading in 2022, while Smart Products Nigeria traded flat at N0.20 per share in 10 months of 2022.

Our correspondent gathered that Capital Oil failed to submit between 2018 and 2020 financial year results and accounts to the investing public, while Rak Unity Petroleum Company has not remitted the second quarter (Q2) and third quarter (Q3) 2021 financial statements.

ALSO READ: Federal Government to grow Nigeria’s gross domestic product to $9tn in the next 28 years

For not submitting between 2015 and Q2 2021 results and accounts, the Exchange imposed a whopping sum of N91.6 million fine on Juli Plc. Smart Products Nigeria has also not remitted 2018 to 2021 quarterly financial statements.

Rak Unity Petroleum Company is an oil and gas company that has been operating in Nigeria for 37 years and has one major investor who controls the company’s shareholdings.

According to information obtained from Rak Unity Petroleum’s full-year 2020 financial year result, Toparte Nigeria Limited owns a total of 48,131,159 units of shares which amount to about 85 per cent of the total shareholding. This leaves other investors — including the investing public — with just 8,493,734 units of shares amounting to 15 per cent.

Consequently, the company’s stock lacks liquidity. The absence of free float, therefore, makes it impossible to trade these stocks on the NGX.

The Exchange in 2021 placed Rak Unity Petroleum on suspension sequel to the ongoing winding up of the company as approved by its shareholders.

Capital market analysts have said the challenging economic factors and corporate governance structure have contributed to the worst performance of these companies’ stocks on the bourse.

The CEO of Wyoming Capital and Partners, Mr. Tajudeen Olayinka, said companies in the ASeM were yet to take their rightful place in the capital market.

According to him, “The attraction of public companies to any market for listing, especially small and medium-sized enterprises, is dependent on liquidity and capacity of the market to provide access to companies to raise long-term capital at a lower cost of capital.

“This is presently not the case in Nigeria. Many of the listed companies, which are doing well and very profitable, are currently trading at a deep discount to their book values.

“This is unacceptable, as no board of a company would approve capital raising at those ridiculous prices. “I think we should allow that segment of the market to grow.”

Speaking on whether the Board should be scrapped, David Adonri of HIGHCAP said the scrapping of the Board might erode the inclusivity of small businesses on the NGX, noting that it remained for the SMEs. “ASeM Board is for incubation of SMEs. It should not be scrapped,” Adonri said

SOURCE: Punch news

0 comment
0 FacebookTwitterPinterestEmail
AfricaAFRICA NEWSBusinessEconomyNewsNigeriaWestern Africa

Lagos Free Zone N25bn infrastructure bond launches on Nigerian exchange

by Radarr Africa
written by Radarr Africa

The Lagos Free Zone (LFZ) N25 billion series 2 bonds, which is Nigeria’s first 20-year corporate infrastructure bond, have been launched on the Nigerian Exchange Limited (NGX) market.

LFZ is the infrastructure development company of the Tolaram Group and the first private free trade Zone in Nigeria. LFZ can sell all their goods in Nigerian customs territory with no state or federal taxes charged without an import or export license. They can also repatriate their profits and dividends.

The Exchange also hosted a Closing Gong ceremony to commemorate the listing of LFZ’s N25 billion 20-year, 13.25 percent Series 2 Senior Guaranteed Fixed Rate Infrastructure Bond.

It will be noted that the Company listed its first issue of N50 billion in bonds on August 8, 2022, through LFZC Funding SPV Plc. The bonds were N25 billion in 20-Year 13.25 percent Series 2 Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2042.

ALSO READ: Angola overtakes Nigeria as Africa’s largest oil producer in August

Speaking at the listing of the second tranche, Jude Chiemeka, Divisional Head, Finance Markets, NGX, praised the company for the historic transaction and praised the Nigerian debt market as a legitimate source of domestic capital for Nigerian infrastructure development.

The CEO of LFZC, Mr. Dinesh Rathi, stated: “This bond is a part of N50 billion bond program, which we had initiated last year and this current listing entails the series two of N25 billion long term bonds, a 20 year fixed rate instrument and the longest tenure bond in Nigeria’s debt capital market.”

Source: Techeconomy

0 comment
0 FacebookTwitterPinterestEmail
AfricaAFRICA NEWSBusinessNewsNigeriaWestern Africa

NGX approves international breweries’ free float extension

by Radarr Africa
written by Radarr Africa

The Nigerian Exchange Limited (NGX) has approved International Breweries’ free float compliance extension request of two (2) years ending 30 July 2024.

This was contained in a disclosure on approval of free float compliance extension signed by Muyiwa Ayojimi, the company secretary.

Free float is the percentage of a publicly quoted company’s shares which is not restricted from public trading and is made available on the stock exchange market.

According to the company, the development will enable it comply with NGX’s free float requirements.

It stated, “The Board of Directors of International Breweries Plc (“the Company”) hereby notify all its esteemed shareholders that the Executive Management of Nigeria Exchange Limited (NGX) approved the Company’s free float compliance extension request of two (2) years ending 30 July 2024.

“This is to enable the Company comply with NGX’s free float requirements of 20 per cent issued and fully paid share capital or twenty billion Naira free float market capitalisation for companies listed on its Main Board and to ensure that the Company returns to its post listing obligations.

“This is in line with Rule 3.1.4 of The Exchange’s Rules Governing Free Float Requirements, which states that ‘The Exchange may suspend trading in the Company’s securities if the Company does not achieve the required free float within the stipulated timeframe’. It also noted that the Board and Management of the company remains committed to ensuring that the free float deficiency is cured within the stipulated timeline granted, and to maintaining good corporate governance, while also delivering value to all its stakeholders.

ALSO READ: FCCPC bars Flutterwave, Opay, and others from providing services to loan sharks

“The Company is positioned to achieve and meet the free float requirements within the two (2) years’ timeframe, ending 30 July 2024 given by NGX,” It noted.

A free-float basically means the number of outstanding shares of a company that is liquid and tradeable on the stock exchange. These are shares that have been dematerialised and exist on the stock exchange for investors to buy or sell.

According to listing rules, stocks quoted on the Nigerian Stock Exchange must have a free float requirement of about 20 per cent of their issued and fully paid-up shares. This provision is the same for companies listed on the Main and Premium Board.

Source: Sunnews

0 comment
0 FacebookTwitterPinterestEmail
AfricaAFRICA NEWSBusinessNewsNigeriaWestern Africa

SEC, Nigeria approves new window for fixed income securities

by Radarr Africa
written by Radarr Africa

The Securities and Exchange Commission (SEC) has approved the Nigerian Exchange Limited (NGX)’s guidelines on Trade Execution via the exchange’s On-Manual Negotiated Deal Window for fixed income (FI) securities.

The FI market provides access to both retail and institutional investors to trade fixed income securities listed by the Federal Government of Nigeria, the States, Corporates, and Supranational issuers on the exchange.

According to the NGX, ‘It adopts an integrated straight-through trading and settlement process using best in class market infrastructure without trade failures known as NGX On-Manual negotiated deal.’’

These guidelines on trade execution via NGX On-Manual Negotiated Deal Window for Fixed Income Securities (Guidelines) provide guidance to approved trading license holders for the use of the Neg- Deal Window to execute their trades on bilateral pre-agreed terms; and shall be read in conjunction with the Rules of the Exchange and such other Rules or Guidelines as the Securities & Exchange Commission (SEC), NGX and other relevant regulatory authorities may introduce to regulate the fixed income securities market from time to time.

ALSO READ: ExxonMobil renews 2 deep-water assets in Nigeria

The On-Manual Negotiated Deal Window is a trading channel available to execute negotiated fixed income deals during The Exchange’s trading hours.

The Negotiated Deal Window complements order executions via the Central Order Book and shall be used only for permissible volume of fixed income securities on bilateral pre-agreed terms. Trades executed via the Neg-Deal Window will be recognized for price-setting purposes and will reflect in the exchange’s trading statistics.

Source: Sunnews online

0 comment
0 FacebookTwitterPinterestEmail
AfricaBusinessNewsNigeriaWestern Africa

Investors gain N81bn as Nigeria equity market closes positive

by Radarr Africa
written by Radarr Africa

Trading activities at the Nigeria equity market closed on positive posture, as investors raked in N81.01 billion gain on Friday.

Similarly, the gain made the market capitalisation to close at N27.358 trillion from N27.276 trillion recorded on Thursday.

Also, the All-Share Index (ASI) of the Nigerian Exchange Ltd. rose by 190.03 points or 0.28 per cent to 50,722.33 points from N50,582.30 points it was at the previous trading.

Consequently, this indicated a year-to- date return of 18.74 per cent.

The market breadth was positive as 23 stocks advanced and nine declined.

On the performance level, Eterna led the gainers with 10 per cent share price appreciation closing at N7.15 per share.

Multiverse Mining & Exploration followed by 9.94 per cent to close at N1.88 per share.

Japaul Gold and Ventures rose by 9.68 per cent to close at 34k per share, while PZ Cussons Nigeria grew by 9.63 per cent to close at N10.25 per share.

Also, Jaiz Bank increased by 8.86 per cent to close at 86k per share.

On the other hand, Unilever Nigeria led with depreciation by 10 per cent to close at N13.50 per share.

Skyway Aviation Handling Co. was the next, dropping by 8.76 per cent to close at N6.25 per share.

Guinness Nigeria fell by 8.29 per cent to close at NN83 per share, while Consolidated Hallmark Insurance went down by 7.69 per cent to close at 60k per share.

Regent Alliance Insurance depreciated by 7.41 per cent to close at 25k per share.

ALSO READ: World Bank donates $8.5bn to Nigeria

Honeywell Flour Mill was the most active stock, traded with the highest volume of 22.02 million units of shares worth N64.08 million.

It was followed by Guaranty Trust Holding which transacted 21.7 million units of shares valued at N445.68 million

FBN Holdings sold 11.3 million units of shares at N123.78 and Zenith Bank transacted 10.17 million units of shares worth N223.06 million.

Transcorp traded 8.72 million units of shares valued at N9.87 million.

Source: NAN

0 comment
0 FacebookTwitterPinterestEmail
AfricaHospitality, Travel & TourismNewsNigeriaOil & GasWestern Africa

Transcorp posts 85% Growth In Profit

by Radarr Africa
written by Radarr Africa

Transnational Corporation Plc (Transcorp) has released its half-year results for the year ended June 30th, 2022, posting 85 per cent profit after tax as revenue for the year grew.

The conglomerate with investments in Power, Hospitality and Oil & Gas recorded a revenue of N62.9 billion, representing a growth of 18 per cent when compared to N53.3 billion recorded in the same period under review in 2021.

Its operating income grew by 25 per cent from N16.3 billion in 2021 to N20.5 billion in the same period.

Its half-year unaudited results released to the Nigerian Stock Exchange (NGX) also showed that profit before tax grew by 90 per cent, from N7.1 billion to 13.3 billion in the period under review , while profit after tax stood at 12 billion, representing an 85 per cent increase from N6.5 billion from the previous year.

The group’s shareholders’ funds also grew by eight per cent from N146.3 billion to N157.5 billion in the same period.
Commenting on the performance, Transcorp’s president and group chief executive, Owen Omogiafo, attributed the continued strong performance to growth in its power and hospitality businesses, which continued to perform excellently despite the tough operating environment.

ALSO READ: NGX lifts suspension on C & I leasing shares

“Across all our businesses, we are relentless in executing our transformation and growth agenda and are pleased with the results achieved thus far. We have invested strategically over the years in long-term projects and businesses that continue to yield productive returns and position Transcorp Group as an institution that delivers value to all stakeholders, and as one to transcend many generations” Omogiafo stated.

Speaking further on the growth, the president said: “our hospitality arm, Transcorp Hotels Plc (THP) recorded a revenue growth of 173 per cent over same period last year, demonstrating a strong and sustained recovery from the impact of COVID-19 pandemic, leveraging innovative strategies and superior customer experience.

“In our Power business, despite the challenges of grid instability and gas reliability, we recorded considerable growth in our power investment, with our available capacity growing by 21 per cent (100MW)over last year and improving our overall operational efficiency. We have continued to progress with our OPL281 investment and are well on the way towards attaining of our integrated energy strategy, and increasing returns for all stakeholders.”

Source: Leadership

0 comment
0 FacebookTwitterPinterestEmail
AfricaINVESTMENTNewsNigeriaWestern Africa

NGX lifts suspension on C & I leasing shares

by Radarr Africa
written by Radarr Africa

The Nigerian Exchange Limited (NGX) has lifted the trading suspension placed on trading the shares of C & I Leasing Plc for failing to file its financial results for 2021, Q1 2022 and Q2 2022 as when due.

In its latest notice, the NGX said C & I Leasing Plc, one (1) of the nine (9) listed companies that were suspended on 1 July 2022, has now filed its Audited Financial Statements for the year ended 31 December 2021, and Unaudited Financial Statements for the quarter ended 31 March 2022.

ALSO READ: MoMo wallets records N2.4 active wallet, in less than two months

Therefore, it said in view of the company’s submission of these financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, which states that; “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

“The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted”, Trading License Holders and the Investing Public are hereby notified that the suspension placed on trading on the shares of C & I Leasing Plc was lifted on, 29 July 2022.

Source: Investorsking

0 comment
0 FacebookTwitterPinterestEmail
BusinessWestern Africa

Flour Mills pays shareholders N8.8 billion dividend.

by Radarr Africa
written by Radarr Africa

Flour Mills Nigeria PLC will reward shareholders with a dividend payout of N8.82 billion, translating to N2.15 per share for the financial year 2021, the firm said in a notice published on the Nigerian Exchange Limited (NGX) on Wednesday, seen by PREMIUM TIMES.

The consumer goods manufacturer said payment of the dividend is subject to appropriate withholding tax and will go to shareholders whose names appear in the register of members as of the close of business on August 12, 2022.

The firm paid N1.65 dividend per share in the 2020 financial year, meaning shareholders will receive 30.3 per cent more this time around.

It said the register of shareholders will be closed from Monday 15 August to Friday 19 August, 2022.

The cash reward will be paid electronically to shareholders who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

ALSO READ: NEPZA, FIRS Agree on New Tax Regime for Economic Zones, Sign Pact.

In April, Flour Mills got the go-ahead from regulators to acquire a acquire a 71.69 per cent stake in Honeywell Flour Mills Plc and a 5.06 per cent belonging to First Bank of Nigeria Limited in the same entity, with the combined potential holding in the firm coming to 76.75 per cent.

The food processing company also holds a controlling stake in another listed flour-maker Northern Nigerian Flour Mills, putting it on track to become Nigeria’s biggest flour company by asset.

It posted a record turnover of N1.2 trillion for last year, retaining the crown as Nigeria’s biggest listed food and beverages company by revenue. 

“Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s F-Dividend Mandate Activation Form,” the document said.

“Dividend Shareholders with dividend warrants and share certificates that have remained unclaimed and Share or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.”

Source: Premium Times

0 comment
0 FacebookTwitterPinterestEmail