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NASD plans N1.4bn rights issue

Nigerian News Update » Nigerian Newspapers
Vanguard Newspaper
NASD OTC Securities Exchange Plc has disclosed plans to raise N1.4 billion through Rights Issues during the course of the year.

The Exchange also said it recorded transactions valued at N4.6 billion in 2016, while it recorded total trade worth N1.61 billion in the fourth quarter of the year.

The Managing Director/CEO, NASD, Mr. Bola Ajomale, disclosed these at the first quarter NASD interactive session with CEOs of participating dealing member firms in Lagos.

He that the Exchange would offer 111.05 million units of shares at the ratio of one new share for every three ordinary shares previously held at N1.49 per share.

He explained that activity was low in the market in 2016, saying that it was less than a quarter of what the Exchange recorded in the previous year.

He attributed the slow down in activity during the year to a number of issues, including exchange rate volatility and drop in price of crude oil among others.

“So, I would say it was like 70 per cent less than the performance in 2015. This was apparently because of a lot of investors left the market; slow down of activity, rapid change in exchange rate, drop in global oil price.  All of that put together meant that people could not invest as they ought to have done.

They was downturn of activity in the market generally, but we still saw companies having their Annual General Meetings, AGMs, and declaring dividend for their shareholders. Last year was a mixed of low activity and increased financial responsibility and increased awareness among operators.

They now know there is a market that they can trade their instruments,” Ajomale said. Continuing, he said the NASD expanded its product offering and commenced bonds trading, while assuring that the Exchange would follow up on the initiatives for maximum impact.

The NASD boss noted that listings were expected from companies in agro and technology sectors, the Small and Medium Scale Enterprise, SMEs, and the entertainment sector.

He said that as more companies comply with the Securities and Exchange Commission, SEC, directive for all public companies to register their shares with it, more listings would be recorded on its platform.

On listing of companies that were delisted by the Nigerian Stock Exchange, NSE, due to regulatory issues, he said: “We have provided a window for them to list on the NASD. We know that they were not able to meet some certain conditions from the NSE, hence their delisting .So, if such companies come to us, we will accept them and classify them in that category so that investors can trade their shares on our platform.”
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