6 companies raise N365.87bn from Stock Exchange in 7 months

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Nigeria Stock ExchangeLAGOS – The Nigerian Stock (NSE) on Tuesday said that N365.87 was raised by six companies from its primary market segment between January and July 2014.

Statistics from the NSE in Lagos indicate that the performance compared favourably with the N94.61 billion achieved in May.

A breakdown of the new development in seed funds showed that it was raised through Rights Issue, Placement, Initial Offer (IPO) and offer for subscription.

An analysis of the data also showed that Seplat Development Company in the period under review raised N318.74 billion through IPO of 553.31 million shares at N576 per share.

Vetiva Griffin 30 ETF sourced for N982 million through an offer for subscription of 100 million shares at N18.46 billion, while Oando Plc raised N30.70 billion through placement of 2.05 billion shares at N15 per share.

NAN also reports that UBA Capital raised N1.8 billion through rights issue of two billion shares at 90k per share, while Sterling Bank got N12.48 billion from rights issue of 5.89 billion shares at N2.12 billion

Africa Prudential raised N1.2 billion from rights issue to existing at N1.20 per share.[eap_ad_2]

Commenting on the new issues, Mr Ariyo Olushekun, immediate past President, Chartered Institute of Stockbrokers (CIS), lauded the development.

Olushekun said that the market was gradually recovering from the effects of the recent global financial meltdown.

He said that things were getting better in the market with the return of new issues and impressive returns posted by most quoted companies.

He noted that current developments in the country such as insecurity, economic instability and uncertainties over 2015 elections were discouraging investment.

According to him, numerous investors were still withholding their investments in Nigeria due to uncertainties and lull in economic activities following the forthcoming elections.

He, however, called for the listing of multinationals on the NSE, especially information technology companies to boost activities in the primary market.

Also speaking, Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., commended the return of new issues in the Nigerian bourse.

Kurfi said that the global financial meltdown of 2008 was responsible for investors’ loss of confidence in equities market.

He said that most investors’ losses in moribund companies were currently affecting activities both in the primary and secondary market.

Kurfi said that the should ensure listing of all privatised agencies to increase activities and deepen the nation’s bourse. (NAN)[eap_ad_3]