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15 Firms’ Exit Costs Stock Market N24.075bn in One Year

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  • 15 Firms’ Exit Costs Stock Market N24.075bn in One Year

The delisting of 15 companies from the Nigerian Stock Exchange in 2016 took away N24,075,418,729.61 capital from the market, findings by our correspondent have shown.

The 15 firms left the market for various reasons such as voluntary intent, regulatory directive, and mergers and acquisitions.

Those affected are G. Cappa Plc, IPWA Plc, West African Glass Industries Plc, Investment and Allied Insurance Plc, Alumaco Plc, Jos International Breweries Plc, Adswitch Plc, Rokana Plc and Vono Products Nigeria Plc.

Others are Lennards (Nigeria) Plc, P.S. Mandrides and Company Plc, Premier Breweries Plc, Costain West Africa Plc, Navitus Energy Plc and Nigerian Ropes Plc.

The market capitalisation of the respective firms as of the time of delisting was given as N1.717bn, N257.07m, N131.427m, N14bn, N557.201m, N809.280m, N203.758m, N30m, N484.74m, N210.492m, N214m, N2.888bn, N542.191m, N62.118m and N1.966bn, respectively.

Vono Products Plc was delisted after its merger with Vitafoam, while the others were delisted as a result of non-compliance with their post-listing obligations.

However, the NSE only succeeded in listing one firm throughout 2016. The firm listed was a Port Harcourt-based industrial cleaning, contamination and waste management company known as The Initiates Plc.

Specifically, the company was listed by the introduction of 889,981,552 ordinary shares of 50 kobo each on the Alternative Securities Market Board at the price of N0.85 per share.

The outstanding shares for each of the delisted companies, according to the NSE, are 125,000,000; 514,140,713; 208,614,500; 28,000,000,000; 75,604,049; 562,000,000; 125,005,250; 50,000,000; 563,651,183; 70,164,062; 40,000,000; 979,211,412; 1,084,382,980; 98,600,000; and 263,668,295, respectively.

As part of efforts to further improve market transparency and integrity, provide timely information for investment decisions as well as enhance the protection of investors in the capital market, the NSE last year commenced the use of enhanced Compliance Status Indicator codes on the ticker tape for listed companies. This became effectively on May 9, 2016.

Under this initiative, the Exchange tags all listed companies with a three character code that indicates their compliance status at any particular point in time. This compliance code enables investors to make informed decisions, while ensuring a transparent market guided by timely information.

The General Counsel and Head of Regulation, NSE, Ms. Tinuade Awe, said, “The revision of the existing codes and introduction of new CSI codes complement existing compliance structures of the Exchange and it will work in tandem with the X-Compliance Report, which we publish weekly on our website.

“This initiative of the Exchange, which is in line with global best practices, is designed to maintain market integrity and protect the investors.”

The Executive Director, Market Operations and Technology, NSE, Mr. Ade Bajomo, also said, “We are implementing the CSI code to improve the quality of our market data as well as ensure transparency in providing compliance related information about listed companies.

“The delivery of market data and associated services is an essential building block in the Exchange’s strategy as it seeks to reach a wider audience to improve market integrity and facilitate informed investment decision making.”

The Chief Executive Officer, NSE, Mr. Oscar Onyema, recently said the market would be listing more firms this year. Already, the Exchange has listed five securities this year.

“We expect investors to continue to keep a close eye on the divergence between the interbank foreign exchange rate and other exchange rates in the country. Accordingly, a convergence of forex rates in the country and the performance of listed corporates will determine the level of market activity in the short term,” Onyema added, noting that the NSE would be introducing more tailor-made products for investors.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

CBN to Extend Credit Risk Management System to OFIs

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In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.

According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.

The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.

In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.

“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.

“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.

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Banking Sector

BoI Grows Assets by 78.8% to N1.86 Trillion

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The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.

A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.

The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.

It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.

The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.

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Banking Sector

TAJBank Deploys NQR Solution To Ease Customer Transactions

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TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.

The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.

A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.

“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.

This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.

In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.

Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.

The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.

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