NSE: Four Firms Seek N32.47bn Additional Capital

NSEThere are strong indications that four quoted companies are seeking for approval from the Nigerian Stock Exchange {NSE} to raise about N32.47bn from the capital market.

Transnational Incorporated Plc, Sterling Bank Plc and two other listed firms have secured the approval of the NSE. The other two companies, according to information obtained by BusinessWorld are Wapic Insurance Plc and Resort Savings and Loans Plc.

The companies planned to raise the amount by way of rights issue, since the market picked up at the beginning of the year; quoted companies have indicated their interest to raise money from the market through the existing shareholders.

The approvals for the four firms, it was learnt, were given by the NSE’s Quotations Committee Management, although some of the instruments had yet to be listed on the NSE’s Daily Official List.

Transcorp received approval for its application to raise N12.906bn through a rights issue of 12.906 billion ordinary shares of 50k each at N1.00 per share.

BGL Securities Limited, UBA Stockbrokers limited and TRW Stockbrokers Limited are brokers to the offer, while BGL Plc and UBA Capital are the issuing houses.

Sterling Bank Plc received approval to raise N12.5bn through a rights issue of 5.88 billion shares of 50 kobo each at N2.12 per share.

The stockbroker to the issue is Cardinal Stone Securities Limited, while Sterling Capital Markets Limited is the issuing house to the deal, which is billed to close on July 31, 2013.

Wapic Insurance Plc is seeking to raise N3.51bn from the capital market and has received approval for its rights issue of 6.35 billion ordinary shares of 50 kobo each at 55 kobo per share to existing shareholders.

Marina Securities Stockbroking Services Limited and BGL Securities Limited are the stockbrokers and issuing houses to the offer, which opened early in June and closed on July 5, 2013.

Resort Savings and Loans has on offer 3.2 billion shares of 50 kobo at 51 kobo per share, and one-for-three rights issue of 3.7 billion shares at 50 kobo per share. The company is seeking to raise a total of N3.5bn and has received the requisite approval for the offer.

The NSE said it had been involved in efforts aimed at increasing the confidence of companies to source funds from the equities market to boost their activities.

It said companies should be encouraged to carry out initial public offers and rights issues from the market, adding that this would boost activities in the market.

Commenting, Mr. Haruna Jalo-Waziri, executive director, business development, NSE, recently reiterated the importance of the companies raising funds from the market, especially those in the Alternative Securities Market segment of the economy.

He added that this was essential to national growth hence the need to have them participate fully in the market.

Jalo-Waziri said, “The NSE is a staunch believer in the critical role of emerging enterprises in a developing economy, and as such, we have taken the bold move of providing a platform for sustainable growth and development of these companies.

“The ASeM Board will allow issuers, especially indigenous companies, the opportunity to inject relatively low cost and long term capital into their businesses through flexible rules that recognise their growth potential rather than the size of operation.”

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