The Nigerian Stock Exchange (NSE), last Friday, in Lagos, introduced a number of value added services as a key element of its business development efforts.
Speaking while unveiling the new initiative, Head of Listings Sales and Retention of the Exchange, Mrs. Taba Peterside, explained that the services aim to attract new listings, create a competitive edge for listed companies, retain current listings, improve investor interest in the market through enhanced information and assist listed companies in complying with post-listing obligations and retaining their listing status.
According to her, “We are partnering various local and international organisations to provide services such as Corporate Access, Investor Relations, Institutional Services, Corporate Governance and Independent Equity Research to enhance the value proposition of listing on the Exchange.
“The Corporate Governance bouquet is meant to assist the boards and executive management of listed companies to adhere to best practices in the rules and processes by which their businesses are operated. Through training programmes for directors and other stakeholders, the Exchange aims to promote fairness, transparency, accountability and integrity in an organisation’s relationship with all its stakeholders with a view to increasing shareholder value.”
In the area of independent equity research, she said the bourse would engage independent investment research firms to produce company reports for the investing public. “The focus is on less visible listed companies that are not covered by sell-side analysts. The aim is to raise the company’s profile and visibility with investors and ultimately lead to more interest and activity on its shares,” she said.
Corporate access aspect of the services, she explained, is meant for listed companies interested in tracking investor appetite for their shares. “It gives them real time access to significant buying and selling activity on their company’s stock”, she added.
On investor relations, Peterside explained that a well-designed investor relations programme would help to enhance the understanding of a company’s strategic direction by the investor community; encourage informed deliberation and analysis among investors and analysts on company’s performance through the provision of timely, appropriate and accurate information. She added that it could lower the cost of accessing global capital markets as well as improve a company’s market reputation and visibility.
“The Institutional Services offering is designed mainly for SMEs seeking to access the Alternative Securities Market. This service is intended to aid SMEs in the design and documentation of appropriate internal business structures, management processes and procedures to position them as world class enterprises. A well-structured institution enhances accessibility to finance, “she stated.