Kayode Tokede
The Nigerian Exchange Limited (NGX) has listed new issuance worth N1.08 trillion and Eurobonds of $4 billion on its platform in the first half (H1) of 2022.
The issuances listed across both the bonds and equities markets are essential in deepening the market, tradability, and improving liquidity as well as increasing access to capital to fund growth returns.
In the equities market, NGX started the year with the landmark listing of BUA Foods’ 18 billion shares listed at N40 per share, adding N720 billion to the NGX market capitalisation.
Abbey Mortgage Bank also listed its right issue of about N3.028 billion, while Access Holdings, following its merger and acquisition, listed new shares of 35.545 billion shares valued at N353.675 billion.
On the NGX’s bond market, the Federal Government of Nigeria dominated issuances, raising about N2,494,110,547,000.00 locally and listing $4 billion in Eurobonds.
Furthermore, NPF Microfinance Bank listed 3,107,001,335 ordinary shares of 50 kobo each arising from the offer of 2,286,657,766 ordinary shares of 50 Kobo each at N1.50 per share via a Rights Issue on the basis of 1 new ordinary share for every 1 ordinary share held and public offer of 713,342,234 ordinary shares at N1.50 per share made by NPF Microfinance Bank Plc amounting N4.66 billion while other memorandum listing stood at N2 billion.
According to the NGX, capital is critical for business growth either in form of debt through bonds, or equity through shares.
Speaking on the performance, the Chief Executive Officer, NGX Limited, Temi Popoola noted that the NGX being a significant component of the capital market, will continue to play a significant role in the capital formation process because of the tremendous opportunities that ensue from its activities.
“It is expected that a thriving exchange will continue to mobilize long-term savings to finance long-term investment by providing risk capital in the form of equity or quasi-equity to entrepreneurs, a role NGX continues to prioritize,” he said.
It will be recalled that the NGX earlier in the year highlighted five major focus areas in 2022 in its efforts to deepen access and attract new generation of investors to the market.
Popoola had said the NGX would seek to consolidate its historic status with a new verve of digitisation by creating innovative and automated access to the market while ensuring overall quality of listed companies and ease of capital raising process.
According to him, The Exchange would deploy strategic initiatives to attract financial technology (Fintech) firms to the stock market, including launching of a Nasdaq-style board for the listing of tech companies.
“Today, there are lots of capital raising from tech companies globally. Our market can be a source to raise this capital. SEC has already taken the leadership. It will help to drive economic growth and mobilise capital from sectors of surplus to deficit,” Popoola, in January 2022 said.
He added that the NGX would also accelerate the digitisation of its processes and operations to attract more investors, especially the millennials and youths, who are increasingly turning to alternative investment options. He said NGX would work to integrate the market to digital banks and other transactional channels in order to make the market a viable and accessible investment option.
