The Nigerian Stock Exchange (NSE) said it will be migrating from Monday 16 April Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc to its Premium Board.
In a statement, NSE said the four companies qualified for migration after they met the Exchangeâ€™s listing requirements for the elite board.
The four companies will be joining Dangote Cement Plc, FBN Holdings Plc, and Zenith International Bank Plc, who were migrated to the Premium Board in 2015.
From Monday, there will now be seven companies on the Board.
The Premium Board is the listing segment for the elite group of issuers that meet the Exchangeâ€™s most stringent corporate governance and listing standards.
The Board is a platform for showcasing companies who are industry leaders in their sectors.
Premium Board features companies that adhere to international best practices on corporate governance and meet the Exchangeâ€™s highest standards of capitalisation and liquidity.
The Board gives a company access to a global pool of investors who are focused on companies managed in conformity to the highest standards in their target markets.
â€œAccess Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc have all passed the Corporate Governance Rating System (CGRS) and have market capitalisation of N347.12bn, N378.60bn, N391.37bn and N374.48bn respectively,â€, NSE said.
Commenting on the development, Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON said, â€œThis migration affirms the strides our listed companies are making towards meeting the highest standards of corporate governance and underpins the robustness of our market. The new companies have consistently demonstrated their inherent values to be globally competitive brands and we congratulate them on the attainment of this migrationâ€.
â€œCompanies on the Board are already enjoying the highest levels of visibility and appeal to investors looking for large companies with highest standards of corporate governance. From inception to date, the Premium Board Index continues to outperform the benchmark NSE ASI with the Premium Board recording a total return of 84.99% versus the NSE ASIâ€™s 41.79% as at 11 April 2018. The Premium Boardâ€™s performance continues to reinforce the sentiments of both foreign and domestic investors on the importance of corporate governance and sustainabilityâ€, he added.
To be listed on the Premium Board of The NSE, the aspiring companies must attain a minimum market capitalization of N200bn as at the date of application, a minimum score of 70 per cent on the Corporate Governance Rating System (CGRS), and maintain a minimum free float of 20 per cent of their issued share capital or a free float value equal to or above N40 billion, as well as meet other standard listing criteria.
The NSE Premium Board and the associated Premium Board Index were launched on 25 August 2015.
Culled from NAN