11 June 2012

Nigeria: NSE Set to List Second Firm Since Downturn

Efforts by the Nigerian Stock Exchange (NSE) to list more firms are yielding more results as the exchange will list a reputable financial firm based in Abuja next week.

This will be the second company to be listed so far this year. Companies have been shying away from listing since the market downturn.

However, THISDAY checks showed the approval has been given by the regulatory authorities for the listing of the second firm.

The Managing Director of Deap Capital Management Company Plc, the company bringing the new firm for listing, Mr. Emmanuel Ugboh, confirmed the development at the weekend, saying all was set for the firm to the listed on the NSE next week.

"The approvals for the listing of the company have been received from the regulatory authorities. We have chosen the date for the listing and barring any unforeseen developments, the firm will be listed next week," Ugboh said in a telephone interview.

This is the second company Deap Capital would be bringing for listing on the NSE this year. The first and only firm so far listed this year, was Austin Laz and Company Plc, which was listed on the Exchange last February.

According to Ugboh, despite the challenges the market is going through, Deap Capital has put in the right strategies in place that have enable it bring new firms for listing on the exchange.

He noted that going forward, Deap Capital would continue to bring more firms for listing, saying the investment bank, which is planning to convert into a merchant bank, has the right expertise to boost the efforts of the exchange in encouraging more listings in the market.

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, recently called on entrepreneurs whose companies have not been listed to bring them for listing in order to enjoy the numerous benefits.

"Some of the benefits include access to low cost long term capital which will greatly increase funding alternatives and ability to finance expansion including infrastructure developments to facilitate company growth," Onyema said.

He added that listing would enable the companies enjoy more visibility through exposure to a wider range of investors including market makers, stockbrokers, institutional investors, retail investors, unit trusts and mutual funds, hedge funds and inclusion in local and foreign indices and portfolios.

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