MTN Nigeria, Arik, Sahara Group set to list on NSE
Efforts by the leadership of the Nigerian Stock Exchange (NSE) to further deepen the capital market appears to be yielding positive results, as Nigerian’s telecommunication giant, MTN Nigeria, Arik Air and the foremost energy group, Sahara Group have indicated interest to list on the Exchange next year.
The NSE explained that the renewed interest further affirms the Exchange’s role in building globally competitive brands for sustainable economic growth, adding that these companies have the potentials to create additional liquidity to the market.
MTN Nigerian controls more than 50per cent of the GSM subscribers’ base in Nigeria and has been a darling of many would be investors. Arik Air, which is the biggest Nigerian airline at the moment, is also seeking to be named the national carrier. Sahara is one of the leading indigenous oil and gas companies that service a wide range of clients.
The intention of these companies to raise funds through the Nigerian Stock Exchange affirms the unique position of the Exchange to assist corporate to access capital in a more efficient manner compared to debt financing.
But more importantly, the corporate governance efforts of the Exchange may be adjudged to yielding dividends with these companies not just offering a stake of their equity to investors but ready to subject themselves to greater scrutiny on corporate governance which public quoted companies are often grilled on.
NSE had completed a major dual listing on the London Stock Exchange with Seplat raising $500million through an IPO. This fund raise is the biggest and most successful capital raise in Europe after the 2008 meltdown. This brings the number of companies on the NSE with cross border listings to two.
This seamless execution of the transaction, according to NSE may have been positively impacted by the agreement between NSE and LSE to promote capital markets initiatives in their respective markets especially on dual listing.
With the Seplat deal in the bag, the likes of Sahara may have an easy ride as well. As the NSE collaborates with more African exchanges, the barriers for entry into other markets would be easier for Nigerian companies.
The NSE explained further that the new management of the Exchange since its inception in 2011 has introduced some key compliance and enforcement initiatives at ensuring zero tolerance approach to market infractions.
Some of these initiatives
By Helen Oji