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US Equity and IPO Capital Markets Raise Record-Breaking $125 Billion from 389 IPOs in Q1 2021

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Stock - Investors King

IPO activity in the US had the strongest first quarter in the year 2021, continuing the strong momentum seen in the second half of the year.

According to the research data analyzed and published by Finaria, 389 US-based IPOs raised a total of $125 billion in Q1 2021, up from the 33 issuances that raised $10 billion in Q1 2020. From this total, there were 298 SPAC deals raising a collective $87 billion. That was higher than the amount raised in the whole of 2020.

On the global landscape, proceeds from traditional IPOs set a five-year record. Based on a report by KPMG, 458 issuances raised $96 billion in the period which ended on March 24, 2021. That was up from 252 deals that raised $30 billion in Q1 2020.

US, Hong Kong and A-Share Markets Lead with $61.4 Billion from Traditional IPOs, 63% of Global Total

In the US, the total number of SPACs in Q1 2021 was thrice the figure posted in Q3 2020, which was when the trend became popular.

In Q1 2021, there were only 91 traditional IPOs in the country, raising $38 billion. For the 24 SPACs that completed mergers during the quarter, there was a 27% return. Traditional IPOs, on the other hand, had a 15% return while key indices, S&P 500 and  NASDAQ gained 6% and 3%, respectively.

During the period of Q1 2021 covered by the KPMG report, the US, Hong Kong and A-share markets took the lead globally. They raised a total of $61.4 billion, accounting for 63% of global proceeds.

NASDAQ was the leading stock exchange with $22.1 billion in traditional IPO proceeds. The NYSE was second with $15.6 billion and the HKEX took third spot with $13.9 billion. For the entire first quarter of 2021, NASDAQ had a record-setting 275 issuances, both traditional and SPAC, raising $74.4 billion.

According to Bloomberg, Asian companies set a new record, raising $49.3 billion from first-time share issuances, at home and abroad. It marked a 154% jump from the total proceeds posted in Q1 2020.

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.

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Bonds

Lagos Free Zone Company Issues N10.5B Series 1, 20-year Corporate Infrastructure Fixed Rate Bond in Nigerian Capital Market

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Lagos Free Zone-Investors King

Lagos Free Zone Company (LFZC), the first free zone in Nigeria with a fully integrated deep seaport, is pleased to announce the successful issuance of  NGN10.5 billion 20-Year Series 1 Senior Guaranteed Fixed Rate Corporate Infrastructure Bonds Due 2041 LFZ Bonds) under  NGN50 billion Debt Issuance Programme.

LFZC is the infrastructure development subsidiary of Tolaram, the Singaporean conglomerate with more than 45 years of presence in Nigeria and business interests in consumer goods, infrastructure and fintech space. Lagos Free Zone is being developed as the largest integrated port-based economic zone in Nigeria and shall serve as the beacon of industrial development across Nigeria and West Africa.

Enterprises operating in the Lagos Free Zone will benefit from various policy incentives underpinned by the legislative framework applicable for free zones in Nigeria. In line with its vision statement – “to be the preferred industrial hub in West Africa with world-class infrastructure”, the zone is equipped with a host of shared industrial infrastructure necessary for attracting investments from the leading trade partners of Nigeria.

Backed by an irrevocable and unconditional guarantee from InfraCredit, LFZC Series 1 Bond is accorded a ‘AAA’ long term credit rating by Agusto and Co. and GCR, reflecting the highest degree of creditworthiness for these bonds. The Series 1 Bond, a 20-Year Guaranteed Fixed Bond, was oversubscribed by institutional investors including eleven domestic pension funds, two insurance firms, banks and HNIs.

The transaction is the first 20-year non-FGN Bond issue in the Nigerian debt capital market and the first Securities and Exchange Commission-approved Infrastructure Bond for the development of an industrial hub. The Series 1 Bond priced at a modest premium to the comparable FGN Sovereign Bond, provides a unique opportunity for pension fund managers, life insurance firms and other institutional investors to match their long-term liabilities with low-risk, high yield assets.

Speaking on the transaction, the Chief Finance Officer (‘CFO’) of LFZC, Mr. Ashish Khemka stated: “This is a milestone transaction for us at Lagos Free Zone Company and it is a testament to the capacity of the Nigerian debt market as a veritable source of domestic capital for infrastructural development in Nigeria. The response to this bond program further strengthens our commitment to realize our vision and thereby enhance Nigeria’s competitive positioning with our continuous focus on Ease of Doing Business parameters.

LFZ further underscores Nigeria as a compelling industrial hub within the West African coast and ideally orients itself in anticipation of the imminent single market regime under AfCFTA. We are particularly excited by the confidence demonstrated by pension fund managers and other institutional investors at this debut issue and we appreciate the team at InfraCredit, StanbicIBTC Capital and other parties to the transaction for this novel structure, which helps to de-risk the transaction and aligns the interest of different stakeholders”.

According to the CEO of InfraCredit, Chinua Azubike, “It has been exciting working with Lagos Free Zone Company on this landmark transaction. It further demonstrates our commitment towards inclusive access to long term local currency finance for infrastructure development. Interestingly, LFZC has set a new benchmark in the Nigerian domestic debt capital market, as the first 20-Year Corporate Infrastructure Bond in Nigeria, elongating the corporate bond yield curve and reinforcing the prospect for Nigerian Corporates to raise long term finance within the local market.

The LFZC Bonds validates the appetite of domestic pension funds and other institutional investors in financing viable long term infrastructure assets. We would continue to partner with all relevant stakeholders in executing novel strategies towards unlocking domestic capital for infrastructure finance, in addition to creating quality asset classes for diversifying investment portfolios of local institutional investors”.

Also commenting on the transaction, Funso Akere, Chief Executive of Stanbic IBTC Capital Limited, said: “Stanbic IBTC Capital, FBNQuest Merchant Bank and Radix Capital Partners are delighted to have advised LFZC on this landmark 20-year Infrastructure Bond issuance, which evidences the depth and liquidity of the Nigerian debt capital markets and aligns with the pension fund industry’s growing demand for quality long-dated assets. The success of the transaction demonstrates investors’ confidence in the vision and purpose of the Lagos Free Zone and we thank the Board and Management of LFZC for giving the Issuing Houses a free hand to guide the process to successful completion.

Supporting infrastructure development is a key pillar for Stanbic IBTC and we are very pleased to have acted as Lead Issuing House to this landmark infrastructure bond issuance, which is the longest tenor corporate bond issuance in the history of the Nigerian debt capital markets.”

Funso noted that LFZC is focused on delivering essential infrastructure to ease the cost of doing business and facilitate the entry of global industrial brands into Nigeria, which is expected to boost sustainable development, galvanize economic growth and improve the livelihoods of Nigerians, while also deepening the Nigerian debt capital markets through the issuance of innovative debt instruments.

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Nigerian Stock Exchange

NGX Returns to Red Zone Following Two Days of Consecutive Gains

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stock market - Investors King

The Nigerian Exchange Limited (NGX) returned to the red zone on Thursday following two days of consecutive gains. 

Investors traded 130,202,679 shares worth N1.427 billion in 2,962 transactions during the trading hours of Thursday, against 141,407,914 shares valued at N2.973 billion traded in 3,079 transactions on Wednesday.

Market value dipped by N30 billion to N20.273 trilllion from N20.303 trillion it closed on Wednesday while the NGX All-Share Index depreciated by 0.15 percent to settle at 38,911.31 index points, down from 38,968.34 index points recorded on Wednesday.

Unity Bank led gainers with N0.05 or 9.62 percent to close at N0.57 a share. FTNCocoa followed by N0.04 or 8.70 percent to settle at N0.50 per share. See the details below.

Top Gainers

Symbols Last Close Current Change %Change
UNITYBNK N 0.52 N 0.57 0.05 9.62 %
FTNCOCOA N 0.46 N 0.50 0.04 8.70 %
CORNERST N 0.48 N 0.52 0.04 8.33 %
CHAMS N 0.20 N 0.21 0.01 5.00 %
SOVRENINS N 0.24 N 0.25 0.01 4.17 %

Top Losers

ymbols Last Close Current Change %Change
ETERNA N 7.20 N 6.52 -0.68 -9.44 %
SCOA N 1.17 N 1.06 -0.11 -9.40 %
INTBREW N 5.00 N 4.80 -0.20 -4.00 %
HONYFLOUR N 4.07 N 3.91 -0.16 -3.93 %
UBN N 5.00 N 4.85 -0.15 -3.00 %

Top Trades

Symbols Volume Value
ACCESS 24776258.00 230255009.65
UNIVINSURE 15265888.00 3053177.60
ZENITHBANK 8491361.00 200665488.55
GTCO 6753768.00 182783559.00
JAPAULGOLD 5985308.00 2992593.68

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Nigerian Stock Exchange

Stock Investors Gained N25 Billion on Wednesday

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Stock bull - Investors King

Investors that invested in the Nigerian Exchange Limited (NGX) gained N25 billion on Wednesday as more stocks closed in the green.

Investors traded 141,407,914 shares valued at N2.973 billion in 3,079 transactions during the trading hours of Wednesday, contrast to 228,479,010 shares valued at N1.879 billion that exchanged hands in 3,376 deals on Tuesday.

Market value grew by N25 billion from N20.278 trillion it closed on Tuesday to N20.303 trillion on Wednesday,  while the NGX All-Share Index appreciated by 0.12 percent to 38,968.34 index points, up from 38,920.5 index points.

UPDC Plc led gainers for second consecutive day with N0.16 or 9.64 percent to close at N1.82 per share. While N Nig. Flour Mills Plc followed with N0.70 or 9.59 percent to settle at N8 a unit. See the details below.

Top Gainers 

Symbols Last Close Current Change %Change
UPDC N 1.66 N 1.82 0.16 9.64 %
NNFM N 7.30 N 8.00 0.70 9.59 %
OANDO N 4.35 N 4.62 0.27 6.21 %
LEARNAFRCA N 1.36 N 1.44 0.08 5.88 %
HONYFLOUR N 3.92 N 4.07 0.15 3.83 %

Top Losers 

Symbols Last Close Current Change %Change
TRANSCOHOT N 5.00 N 4.50 -0.50 -10.00 %
CHIPLC N 0.53 N 0.48 -0.05 -9.43 %
PRESTIGE N 0.48 N 0.44 -0.04 -8.33 %
CHAMPION N 2.08 N 1.91 -0.17 -8.17 %
LASACO N 1.30 N 1.20 -0.10 -7.69 %

Top Trades

Symbols Volume Value
UNIVINSURE 17987052.00 3597410.40
ZENITHBANK 9711718.00 229355692.90
UCAP 9341841.00 76221425.25
TRANSCORP 9082603.00 8286258.24
ACCESS 9023766.00 83787940.10

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