Consolidated Hallmark Insurance (CHI Plc) has restated its commitment to continue to reward investors, having paid dividend for seven out of its 11 years in operations.
The Chairman of CHI Plc, Mr. Obinna Ekezie, stated this in his address to shareholders of the company 24th annual general meeting (AGM) held in Lagos yesterday.
Ekezie said the company’s disciplined approach to cost management led to a profit after taxation(PAT) of N407.074 million for the year ended December 31, 2018.
Out of the profit, the directors recommended a dividend of N162.6 million, that translated to two kobo per share.
“We shall remain committed to our promise of regular dividend payment, God willing, having paid dividends seven nancial years out of eleven of our operations in the past. This year, we are proposing a total dividend payment of two kobo per share subject to your approval at this meeting. This will translate to a total dividend payout of N162.6 million from our 2018 operations,” he said.
Speaking on the financial performance of the company, the Managing Director/CEO, CHI Plc, Mr. Eddie Efekoha said the results of their performance in 2018 was an improvement on the growth projections for the industry.
“It is an all-time high rise in revenue, hitting a gross premium written of N6.865 billion, an increase of 20.85 per cent over the 2017 gure. Business retention remains good, even as we have further energized our Retail and agency segments to grow new business in ow into the group. The retail segments achieved a combined growth of 135per cent in 2018 on their 2017 performance,” he said.
According to him, CHI Plc’s revenue diversi cation drive was a major factor that aided the sustained nancial performance through the challenging market conditions of 2018, further reinforcing its role as a formidable player in the Insurance Industry.
“We have continued to ful l our claims payment obligations to customers promptly amidst rising claims in the industry, with N4.787 billion on claims settlement in 2018 when compared with the N3.354 billion. The 42.72 per cent increase, though signi cant, is a reduction of the 93 per cent growth in 2017 claims expenses over that of 2016. The increase in the gure for 2018 is attributable largely to a few large one-offs with a single payment on a marine hull loss amounting to N2,174 billion. Signi cant recoveries on overall claims expenses amounting to N2.984 billion were, however, made from our robust reinsurance arrangement,” Efekoha said.
The Nigerian Stock Exchange (NSE) yesterday defended the listing of MTN Nigeria Communications Plc, saying it followed due process and did not violate listing rules just as the illiquidity of MTN shares continues while a few shareholders continue to reap big.
The share price closed yesterday at N131.70 per share after four days of trading, representing almost 50 percent rise in price.
The NSE, in a statement, said there seemed to be a misconception that a concession was given to MTN Nigeria on the minimum free float required for companies listed on the exchange.
It said its Rule Book defined free-float as the number of shares that an issuer has outstanding and available to be traded on the Exchange.
This includes all shares held by the investing public, and excludes shares held directly or indirectly by promoters, directors and their close relatives; strategic investors holding five per cent and above of the issued share capital; or government.
The NSE’s defence came just as investors urged the Securities and Exchange Commission (SEC) to ensure that the ongoing investigation into the process that led to the listing of MTN Nigeria on the NSE is thorough, especially as it relates to the crossing of shares.
However, MTN in a reaction to the push-back that has trailed its listing, said it met all listing conditions and violated no guidelines.
In its statement, the NSE pointed out that its rules for listing on the Premium Board, which is the platform on which MTN Nigeria is listed, require a company to have a minimum free float of 20 per cent of its issued share capital or that the value of its free float is equal to or above N40 billion on the date the exchange receives the issuer’s application to list.
“MTN Nigeria met with the free float requirement of N40 billion. The free float of MTN at the time of listing was in excess of N90 billion,” NSE added.
According to the NSE, where a company lists following an initial public offering, shares are expected to be available for trading on the day of listing, while in a listing by introduction, no shares have been offered for subscription by the company prior to listing.
It said: “Thus, without any intervention, it is possible that there will be no shares available for trading on the listing date. Indeed, currently, no rule of the exchange compels shareholders in a listed company to tender their shares for trading. Shareholders are at liberty to trade their shares at any time and price suitable to them. Thus, in order to stimulate trading in the shares of companies that list by introduction, the NSE’s practice is to urge the company to make shares available on the day of listing. In the case of MTN Nigeria, the NSE had requested the company as part of the listing process to make shares available and The Exchange expects the company to do that.
“We will like to assure our stakeholders and the general public that the exchange will continue to uphold global best practices in its business operations and will sustain engagement with its stakeholders to continually develop regulatory frameworks that ensure our market completely reflects our values of ambition, fairness and inclusion.”
THISDAY had reported that investors on the NSE and stakeholders waiting to purchase MTN shares through an initial public offering might do so at a very high premium whenever the telco decides to float the IPO.
This was because of the free float accommodation and some other waivers MTN Nigeria was granted by the capital market regulators to pave the way for its listing last Thursday.
The telco company, in a statement yesterday by its Company Secretary, Uto Ukpanah, said its listing on the NSE led to the creation of a new telecoms and technology asset segment for the NSE.
This, the telco stated, also deepened the equity capital markets base of the country, which makes it possible to broaden the shareholding base of MTNN over time.
“The listing by introduction means that the existing shares of MTN Group (78.8 per cent), the Nigerian investors (19.4 per cent) and other investors (1.8 per cent) are listed. All MTNN shareholders will be free to trade their shares on the NSE.
“MTN Nigeria met all of the conditions required to list as a member of the Premium Board of the NSE and was required to publish a commencement listing price. The outstanding matter relating to the Attorney General of the Federation created a high degree of uncertainty over the valuation of MTNN, which makes it difficult to determine a fair price.
“For MTN Nigeria at present, the associated risks and potential returns could not be fairly assessed and priced. As a result, and in the best interest of all shareholders, both the current and future, the commencement listing price was set at N90 per ordinary share, which was determined with reference to the private shares sale transactions by MTNN shareholders over a 180 trading day period,” it said.
According to MTN, the N329 billion medium term facility it signed in 2013 would be fully paid by November 2019, while the N200 billion facility it signed last week formed part of its new debt program, in line with the medium term business plan of the company.
“The new facility, when drawn down, will be used to support our medium term capital expenditure projects; fund our working capital needs, meet operational expenditure requirements and position the company to take advantage of future expansion opportunities.
“The preference shares have not been redeemed. The redemption of the preference shares was always envisaged as a necessary part of simplifying the capital structure of the company ahead of, or soonest after listing. After obtaining necessary regulatory approvals, the preference shares redemption will be taken from the distributable reserves of the company and paid for with cash generated from its operations,” it added.
Meanwhile, Afrinvest has expressed concerns over the illiquidity of MTN shares on the exchange, adding that this is partly connected to the cheap valuation of the company at the point of listing.
“In our discussion with management, we discovered that the N90 listing price was arrived at using the average trading price of linked units at the over-the-counter (OTC) market over 180 days. We also obtained information that MTN Nigeria’s shareholder loan of US$402 million was converted to cumulative preference shares linked to ordinary shares in 2008.
However, prior to the listing on NSE, the shares were delinked, and the ordinary shares were subdivided into 50 shares at 2 kobo per share from N1 per share. There are plans to redeem the preference shares worth N144.7 billion (US$402 million),” it said.
AfriInvest said the N1 trillion (US$5.2 billion) fine imposed on MTN in 2015 for not disconnecting unregistered SIM cards and the $2 billion fine slammed against the company by the Office of the Attorney General of the Federation in relation to taxes on the importation of equipment and payments to suppliers might be part of the reason for MTN’s cheap valuation at listing and why the IPO is on hold.
Since the listing of the telco by introduction last Thursday, its share price has remained scarce in the market, thereby fuelling suspicion of possible manipulation.
Yesterday, it extended the gains as investors traded 110.719 million units of MTN for N14.582 billion in 292 deals, while its share price rose further by 10 per cent or N11.95 to close higher at N131.70.
THISDAY had reported that investors on the NSE and stakeholders waiting to purchase the shares of MTN Nigeria Communications Plc, through an initial public offering (IPO), might do so at a very high premium whenever the telco decides to float the IPO.
This was because of the free float accommodation and some other waivers MTN Nigeria was granted by the capital market regulators to pave the way for its listing last Thursday.
Since the listing of the telco by introduction last Thursday, its share price, has remained scarce in the market, thereby fuelling suspicion of possible manipulation.
A total of N578.114bn dividends has so far been declared for payment to shareholders by companies that have held their Annual General Meetings for the 2018 financial year.
According to the latest data obtained from the Nigerian Stock Exchange by our correspondent, Dangote Cement Plc paid the highest dividend of N16 per share, which translated to N272.640bn.
Guaranty Trust Bank Plc paid N80.84bn dividend, Zenith Bank Plc paid a total of N78.491bn dividend, Nestlé Nigeria Plc paid N30.517bn, Access Bank Plc paid N17.772bn and Stanbic IBTC Holdings Plc paid N15.361bn.
Nigerian Breweries Plc, Dangote Sugar Refinery Plc, Seplat Petroleum Development Company Plc, FBN Holdings, Cement Company of Northern Nigeria Plc, Total Nigeria Plc, Fidelity Bank Plc, 11 Plc and Okomu Oil Palm Plc paid N14.634bn, N13.212bn, N10.641, N9.333bn, N5.257bn, N4.753bn, N3.187bn, N2.975bn and N2.862bn, respectively.
FCMB Group Plc paid N2.773bn, Nascon Allied Industries Plc paid N2.650bn, Julius Berger Nigeria Plc paid N2.640bn, Custodian Investment Plc paid N2.059bn, CAP Plc paid N2.031bn, United Capital Plc paid N1.8bn, and Transnational Corporation of Nigeria Plc paid N1.219bn.
Wema Bank Plc, Transcorp Hotels Plc and Africa Prudential Plc paid N1.157bn, N1.140bn and N1bn, respectively.
Other companies paid dividends in nine digits, while one company― The Initiates Plc ― paid in six digits (N444,990).
Some shareholders have expressed their displeasure over the dividends paid by the companies.
The shareholders, who expected to have received higher dividends, complained at different Annual General Meetings in Lagos, describing the dividends paid as meagre.
A shareholder with Union Bank of Nigeria, Mrs Olubukola Adesanmi, said, “The dividend is too small; we are just trying to manage it. We believe companies can do better.
“We know there are some issues facing the companies; they keep complaining about taxes, fines and all those things. What they are giving us is ‘kobo-kobo’ but we are just trying to manage it; it is not commensurate with the investments we have.
“I have shares in other banks, like FCMB, Wema Bank, and insurance and fast-moving consumer goods companies; the story is all the same. I have over 500 shares in Union Bank.”
Another shareholder, Mr Kehinde Oniwinde, said he always tried to register his displeasure during AGMs.
He said some companies had not even paid dividends in a long time and nothing was done to them.
According to him, it is unfair that shareholders are not being well compensated or not compensated at all in some cases.
Oniwinde said, “Companies can do better; we always encourage the companies to try and do better. What do you expect when you invest money? You expect to make gain; you don’t expect any loss; but if the loss comes, there must be a reason for it and it should not be a regular thing.
“For some of us that have quite a number of shares in companies, I think a lot more can be done. Those that don’t pay dividends should be probed; there should be a consideration for people that invest money in the company.
“I have been buying shares since the ’70s and I have shares in 72 companies; some about N20m, some N12m, and others less than N10m. I expect these investments to yield tangible returns.”
The President, Advancement of the Rights of Nigerian Shareholders, Dr Faruk Umar, said although no shareholder had come to him personally to complain, he confirmed that many shareholders had complained about low dividends at different AGMs.
He stated that he was also not pleased with the dividends paid by some companies, citing the United Bank for Africa Plc and FBN Holdings.
Umar said, “I also complained that the dividend paid by UBA should have been N1 rather than 85 kobo. But the group managing director said that they would try to achieve it next year.
“At the AGM of FBN Holdings, I also complained about the dividend but they gave a good explanation that they would try to achieve one digit Non-Performing Loan ratio, which would enable them to pay N1 dividend.
“If you look at the profitability, it is very high. If not because of the NPL ratio, they would have paid close to N1. So, I commend them for the 26 kobo they paid, which they said was from their insurance and merchant bank subsidiaries.”
Umar added that he was sure that when the group achieved one-digit NPL, it would be able to pay a dividend from the banking subsidiary, which would increase the amount to be received.
He said he had received explanations from banks, which said dividends were regulated by the Central Bank of Nigeria.
Umar said his findings revealed that if the NPL ratio was one digit, banks would not be outlawed by the CBN to pay dividends.
He said, “If you also look at the first-quarter results, many companies have not recorded losses; they have improved marginally on their profits. I am hopeful that the dividend next year will be higher than the one paid in 2018.”
The Group Chairman, UBA, Mr Tony Elumelu, noted that the year 2018 was not rosy for many companies because of the difficult operating environment.
He said the economy witnessed a slow recovery but the bank tried its best to deliver good results and value for shareholders.
He assured shareholders that being a shareholder himself, he would ensure that the request for an upward review of dividends was considered while hoping for better economic and operating environment.
The President, Independent Shareholders Association of Nigeria, Mr Sunny Nwosu, said a lot of regulatory changes, such as the IFRS 9, coupled with the difficult operating environment, contributed to the poor performance of companies.
He said although the dividends paid were below some shareholders’ expectations, companies that paid dividends should be lauded for even the little paid, adding that some companies had not even paid dividends in years.
The President, Constance Shareholders Association of Nigeria, Mr Shehu Mikali, said he did not believe the dividends were small.
He stated that the dividends were quite reasonable, taking into consideration the business environment that such companies operated in during the year.
Mikali said, “Most of the companies have been able to pay; so, we have to give kudos to them because it is not easy to do business in an area where there are insecurity and infrastructural challenges.
“The dividends are better than nothing, and this time is better because some of the companies that have not paid in a while paid dividends this year.”
He stated that rather than complain, shareholders ought to give advice to such companies on how they feel the company could better perform and urge the government to make the economic environment more palatable and conducive for companies.
He added that the government should also work on constituting the board of directors of the Securities and Exchange Commission to enable the apex regulatory authority of the capital market to perform better.
“If it is a government that knows what it is doing, these are areas it ought to have done something about. When all that needs to be put in place with respect to regulation had been done and the regulators are doing their best to investors’ interest, we will have better accountability from such companies and better returns,” Mikali noted.
He described the Nigerian economy as a viable place to do business, saying the government could do more to make it better.
The nation’s stock market recorded its highest gain since February 12 last week as the market capitalisation of equities rose by N1.874tn following the listing of MTN Nigeria Communications Plc on the Nigerian Stock Exchange.
The market started the week on a negative note, as the NSE All Share Index dropped by 98 basis points on Monday while the market capitalisation of equities dropped to N10.701tn from N10.842tn on Friday the previous week.
Further declines were recorded on Tuesday and Wednesday as market sentiment remained bearish.
The NSE ASI, however, increased by 52bps and 153bps on Thursday and Friday respectively following MTN Nigeria’s listing on Thursday.
MTN’s share price gained 21 per cent to close the week at N108.90 with a total bid of 262 million units (227 million units at N108.90 and 34 million units between N90.00 and N108).
Analysts at Afrinvest Securities Limited said 528,600 units of MTN’s shares had been traded so far at a total value of N57.6m.
“Major trades carried out so far are 244,000 units crossed at N108.90; 44,850 units crossed at N108.90 and 203,600 units crossed at N108.90,” they said in a note.
Analysts at Vetiva Capital Management Limited said with significantly high demand for the stock expected to continue, they expected market activity to remain upbeat as investors continued to source the shares.
They said, “We expect the market to close positive at week open as the index continued to rally on the back of the new listing.”
The Nigerian Stock Exchange, in its weekly market report, said a total turnover of 1.172 billion shares worth N17.887bn in 18,380 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.477 billion shares valued at N10.876bn that exchanged hands the previous week in 20,740 deals.
The financial services industry (measured by volume) led the activity chart with 680.592 million shares valued at N7.395bn traded in 11,035 deals, thus contributing 58.09 per cent and 41.34 per cent to the total equity turnover volume and value, respectively.
The conglomerates industry followed with 266.636 million shares worth N818.249m in 1,152 deals. The third place was occupied by the Information and Communications Technology industry with a turnover of 82.390 million shares worth N6.085bn in 346 deals.
Trading in the top three equities, namely Transnational Corporation of Nigeria Plc, Access Bank Nigeria Plc and Guaranty Trust Bank Plc (measured by volume), accounted for 421.064 million shares worth N4.681bn in 3,073 deals, contributing 35.94 per cent and 26.17 per cent to the total equity turnover volume and value, respectively.
The ASI and market capitalisation appreciated by 0.08 per cent and 17.29 per cent to close the week at 28,871.93 and N12.717tn, respectively.
Sixteen equities appreciated in price last week while 42 equities depreciated, compared to the 18 gainers and 49 losers recorded the previous week.
The top gainers for the week were Thomas Wyatt Nigeria Plc, Neimeth International Pharmaceuticals Plc, A.G. Leventis Nigeria Plc, Transnational Corporation of Nigeria Plc and NPF Microfinance Bank Plc, which gained 24 per cent, 22 per cent, 16.67 per cent, 9.73 per cent and 8.89 per cent, respectively.
Regency Assurance Plc, Forte Oil Plc, Champion Breweries Plc, FCMB Group Plc and Wema Bank Plc, whose respective share prices shed 20 per cent, 18.88 per cent, 18.18 per cent, 13.89 per cent and 13.89 per cent were the top losers for the week.
Temporary relief came to the Nigerian stock market last week following the listing of MTN Nigeria Communications Plc. Trading in the shares of MTN in two days reversed Nigeria’s equities market fortune to the positive territory.
The high demand for the stock after its listing without commensurate supply led to a jump of 21 per cent in its price from N90 to N108.90.
The gain by the telecoms giant effectively wiped off losses from the prior sessions. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.08 per cent to close at 28,871.93 points. Market capitalisation added N1.9 trillion to close higher at N12.7 trillion.
But investors on the NSE and stakeholders waiting to purchase the shares of MTN Nigeria Communications Plc through an initial public offering (IPO) may do so at a very high premium whenever the telco decides to float the IPO. This is because of the free float accommodation MTN Nigeria was granted by the capital market regulators to pave the way for its listing, even as MTN exercised its option on preference shares worth N145 billion a day after the listing and went ahead to borrow a further N200 billion from Nigerian banks, to pay off the preference shareholders at the listing price of N90 per share, a source revealed.
However, analysts at Cordros Capital Limited said since the gain recorded was not broad based, they advised investors to still maintain cautious trading.
“Clearly, the gain was not broad-based, at such we reiterate our cautious trading pattern. Meanwhile, we believe that the blend of positive macroeconomic fundamentals and compelling valuations still supports a near term recovery,” they said.
A further review of the trading pattern last week, showed that the market was bearish for three days prior to the listing of MTN. For instance, the market opened with a decline of 1.26 per cent on Monday on the back of losses in Nestle Nigeria Plc and Guaranty Trust Bank Plc. The market witnessed further decline of 0.22 per cent on Tuesday and 0.48 per cent on Wednesday. However, the bearish run reversed on Thursday and Friday following the listing of MTN on the Nigerian Stock Exchange increasing the ASI by 0.53 per cent and 1.53 per cent respectively.
Across sectors, performance was negative as all indices tracked trended southwards led by the NSE The Banking Index led with a decline of 4.3 per cent.
The Consumer Goods Index trailed, shedding 4.1 per cent, while the NSE Insurance Index shed 3.3 per cent. Similarly, the NSE Industrial Goods and NSE Oil & Gas Index dipped by 2.8 per cent and 2.3 per cent in that order.
Nevertheless, the listing of MTN on the exchange elicited excitement among its board and management.
For instance, the Chairman MTN Nigeria, Pascal Dozie, said: “Today is a major milestone in the evolution of MTN in Nigeria and it is fitting that it takes place 18 years to the day since I made the first call on the MTN network on May 16th 2001. Since our initial investment in 2001, we have worked in partnership with Nigerians to deliver the largest network in Nigeria, with over 60 million people now able to access mobile communications services.
“We employ over 1,600 people and our operations create employment for more than 500,000 Nigerians. Our technology has empowered millions of people and businesses in rural and urban areas. This has driven innovation, expanded market access and enhanced local economic inclusion. I am delighted that we can expand this impact further today, by enabling investors to trade our shares on the NSE.”
Also commenting, the Chief Executive Officer, Ferdi Moolman, said: “We have evolved from an ambitious start-up at the genesis of a new and emerging industry, to a business that is able to touch lives in every corner of Nigeria. We have established a sustainable platform for growth, from which we are able to meet the growing and dynamic needs of our customers, our communities and our country.
“This platform has been built through a sustained focus on customer-centric delivery, striving to ensure that every subscriber gets as much value for their money as possible. We are grateful to customers for their loyalty, and to our people, our partners and our regulators for the opportunity to continue to contribute to Nigeria’s growth story.
“We are only beginning to tap into the opportunities that connectivity enables and are fully focused on investing to connect every Nigerian, and to make social innovations like mobile electricity and high impact mobile solutions in education, healthcare and agriculture available in communities everywhere.”
Market turnover
Meanwhile, investors traded a total turnover of 1.172 billion shares worth N17.887 billion in 18,380 deals were traded last week compared with a total of 1.477 billion shares valued at N10.876 billion that exchanged hands the previous week in 20,740 deals.
However, the Financial Services Industry led the activity chart with 680.592 million shares valued at N7.395 billion traded in 11,035 deals, thus contributing 58.09 per cent and 41.34 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 266.636 million shares worth N818.249 million in 1,152 deals. The third place was ICT Industry with a turnover of 82.390 million shares worth N6.085 billion in 346 deals.
Trading in the top three equities namely, Transnational Corporation of Nigeria Plc, Access Bank Nigeria Plc and Guaranty Trust Bank Plc, accounted for 421.064 million shares worth N4.681 billion in 3,073 deals, contributing 35.94 per cent and 26.17 per cent to the total equity turnover volume and value respectively.
Also, a total of 18,181units of Exchange Traded Products (ETPs) valued at N215,365.64 executed in four deals compared with a total of 97,154 units valued at N1.318 million transacted the preceding week in two deals.
A total of 10,366 units of Federal Government Bonds valued at N9,783 million were traded last week in nine deals compared with a total of 265 units valued at N281,654.91 transacted two week in five deals.
Price gainers and losers
A look at the price movement chart showed that 16 equities appreciated in price during the week, lower than 18 in the previous week, while 42 equities depreciated in price, lower than 49 equities of the previous week.
Thomas Wyatt Nigeria Plc led the price gainers with 24 per cent, trailed by Neimeth International Pharmaceuticals Plc with 22 per cent. A.G Leventis Nigeria Plc gained 16.6 per cent, while Transcorp Plc and NPF Microfinance Bank Plc chalked up 8.8 per cent. Okomu Oil Palm Plc and UAC of Nigeria Plc appreciated by 5.0 per cent.
Other top price gainers included: Veritas Kapital Assurance Plc (5.0 per cent); Mutual Benefits Assurance Plc (4.7 per cent ) and Unilever Nigeria Plc (3.2 per cent).
Conversely, Regency Assurance Plc led the price losers with 20 per cent, trailed by Forte Oil Plc with 18.8 per cent. Champion Breweries Plc shed 18.2 per cent, just as FCMB Group Plc and Wema Bank Plc went down by 13.8 per cent apiece. Goldlink Insurance Plc closed 13.04 per cent lower, while NEM Insurance Plc dipped by 12 per cent.
Other top price losers were: University Press Plc (9.7 per cent); Access Bank Plc (9.1 per cent) and Cement Company of Northern Nigeria Plc (9.1 per cent).
Chief Executive Officer of Chapel Hill Denham Advisory Limited, Mr. Bolaji Balogun has said the listing of MTN Nigeria Communications Plc will encourage many other large unlisted companies in telecommunications and other sectors to list on the Nigerian Stock Exchange (NSE).
The NSE last Thursday listed the shares of MTN Nigeria, adding N1.8 trillion to the market capitalisation of the exchange. MTN is the second largest stock on the NSE now after Dangote Cement Plc.
Balogun, whose company and Stanbic IBTC Capital, acted as joint financial advisers to MTN on the successful listing, said it was significant.
“The listing is very significant firstly because it is adding almost N1.8 trillion to market capitalisation. It would be the second largest company by market capitalisation on the exchange and more importantly, it will also bring more of Nigeria’s best companies on to the exchange and give a wider group of Nigerians the opportunity to participate in its share holding,” he said.
According to him, there are very few companies in Africa today that generate $1 billion of free cash flow, explaining that MTN is one of those special companies and “I am really pleased we have it on the stock exchange.”
“This listing would encourage many other large unlisted companies both within that sector and as well as other sector to start to think about the Nigerian stock market,” Balogun added.
An excited Chief Executive Officer of NSE, Mr. Oscar Onyema had said they were delighted to welcome MTN Nigeria to the exchange.
He said: “The listing is a promising development in the country’s telecommunications sector and we encourage other players in the sector to explore the different opportunities in the capital markets for raising long term capital. Having MTN Nigeria listed in our market is a testament of the exchange’s commitment to building a dynamic and inclusive market and creating channels for sustainable investment. This listing will promote liquidity for MTN Nigeria, enhance its value and increase transparency, as our platform remains one of the best avenues for raising capital and enabling sustainable growth for national development.”
The listing will create a new telecoms and technology asset class for investors and provide an opportunity for a wider group of Nigerians to participate in the MTN investment story opportunity.
The listing has made it possible to broaden the public shareholder base over time and will enable MTN Nigeria shareholders to freely to trade their shares on the NSE.
The Nigerian Stock Exchange has said the number of retail investors has increased to three million.
The Divisional Head, Trading Business, NSE, Mr Jude Chiemeka, while speaking at the Maiden Edition of the Retail Investor Workshop tagged ‘Investment masterclass: Making your money work,’ said the NSE aimed to provide vital and strategic information targeted at equipping existing and prospective investors with useful skills to effectively manage and grow financial resources at their disposal, as well as present retail investment opportunities available in the capital market.
Chiemeka said, “Nigeria has a population of over 190 million people and is the second largest economy in Africa. However, the current financial inclusion indices of 48 per cent leave much to be desired.
“Financial inclusion is a priority of stakeholders in the capital market and the Nigerian Stock Exchange makes it a primary concern to contribute towards the achievement of Nigeria’s National Financial Inclusion Strategy of reducing the proportion of adult Nigerians that are financially excluded to 20 per cent in the year 2020.
“Currently there are about three million retail investors in the Nigerian capital market, representing only three per cent of the total adult population in the country.”
He said the Exchange recognises the need to improve investor participation and was leveraging recent capital market initiatives such as the tiered Know Your Customer requirements for capital market investments, as well as promoting the introduction of globally competitive investment products with low entry thresholds, to achieve financial inclusion goals.
Chiemeka added that the initiatives had begun to yield positive results as the market had, in recent times, witnessed an upturn in retail investor participation.
He added that the market data from 2019 showed that retail investors outperformed institutional investors by eight per cent in January, and again by two per cent in March 2019.
He said, “The Retail Coverage Department of the NSE will be rolling out measures directed at encouraging retail investor involvement in the capital markets. Over the next few years, various investment workshops will be held across the country, starting with this one here in Lagos.
“Investors can look forward to regular engagements targeted at promoting financial literacy, building investor confidence, as well as the introduction of innovative and technology-driven solutions to stimulate investor participation.”
The Securities and Exchange Commission has said the commodities trading ecosystem is capable of playing a strong role in the nation’s diversification efforts as being championed by the present administration.
The acting Director-General, SEC, Ms Mary Uduk, while speaking at a capacity building programme for judges and top management members of the Investment and Securities Tribunal in Abuja on Monday, said it was important to organise the commodities market to enhance its efficiency, growth and competitiveness.
She added that the commodities market would play a strong enabling role in food security, employment generation and economic diversification, which she described as the main thrust of the government.
Uduk, who was represented by the acting Executive Commissioner, Operations, SEC, Mr Isyaku Tilde, said there were a lot of benefits in promoting commodities exchanges and the ecosystem in general “as they provide a transparent pricing mechanism, promote attractiveness of agribusiness, foster financial inclusion and improve quality of agricultural output and profitability as well as government revenue.”
She said as part of its implementation of the 10-year Capital Market Master Plan, SEC constituted a technical committee on commodities trading ecosystem, whose mandate was to identify challenges of the existing framework/infrastructure and develop a road map for a vibrant ecosystem.
According to her, the technical committee set up to develop a road map for reviving the commodities trading ecosystem came up with over 40 recommendations to be implemented in four phases between 2018 and 2025.
She said, “The report observed the knowledge gap that exists within the ecosystem and recommended the need for capacity building on the commodities trading ecosystem to stakeholders and to the general public.
“To ensure the implementation of these initiatives, SEC constituted an implementation committee consisting of institutional members to drive the process. The training became necessary because the IST statutorily has jurisdiction over securities-related matters and this includes the commodity trading market.”
According to her, the successful implementation of the technical committee’s report will lead to more activities in the market and resolve disputes.
“It is without a doubt that investors’ protection is at the heart of market regulation. This implies that the most important participant in the capital market is the investor, hence, the overriding need for strong regulation and adequate safeguards coupled with an efficient dispute resolution mechanism,” Uduk added.
The Chairman, IST, Mr Isaiah Idoko-Akoh, commended SEC for organising the training programme, adding that with the way the market was progressing, the commodity market had become a very important aspect.
He said the IST had seen the growth of commodities exchanges in other jurisdictions and hoped to have a similar interface to assist in moving the nation’s economy forward.
MTN Nigeria is to be officially introduced on the Nigerian Stock Exchange (NSE) on Thursday as the telecom company has concluded all relevant processes which will enable it list on the Nigerian bourse, two officials told Daily Trust yesterday. The NSE and MTN officials who pleaded anonymity confirmed to our reporter that the telecom operator’s 20.3billion shares are expected to start trading this week. ‘’Yes, I can confirm that we are listing this Thursday’’, a top MTN official told Daily Trust yesterday. ‘’All I can say is that Nigerian investors will start trading in MTN sometime this week’’, a top NSE official familiar with the MTN listing said.
The telecommunication giant last week said it had completed the registration of 20.3billion ordinary shares of N0.02 each with the Securities and Exchange Commission (SEC). It said the successful completion of the process set in motion the next steps in the company’s intended listing by introduction on the Nigerian Stock Exchange (NSE). MTN CEO, Ferdi Moolman, said, “I am excited we have achieved another milestone in our listing process, and we want to thank the SEC and the Corporate Affairs Commission (CAC) for supporting us through the process.
We have now begun to engage with the NSE to complete the listing process.” The South African telecoms giant had in April announced its conversion from a private company to a public company. The conversion to a public company is a legal requirement and a key milestone in the preparatory process for MTN’s listing on the NSE, Mr. Moolman, had said in a statement in April. Moolman said MTN’s intended listing on NSE would create a new telecom asset class for investors and provide a wider group of Nigerians with a chance to participate in the MTN investment opportunity. He had also said it was a re-affirmation of the company’s long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them.
Nigerian Breweries Plc has recommended total dividend of N19.401 billion for the 2018 financial year.
This amounted to dividend of N2.43 per ordinary share of 50 kobo each.
The company attributed the 100 per cent dividend payout as a demonstration of its strong balance sheet and robust cash flow.
Managing Director of the Company, Mr. Jordi Borrut Bel, disclosed this at its Pre-AGM press briefing in Lagos recently.
Bel said the company had earlier paid an interim dividend of N4.8 billion in October 2018, which amounted to 60 kobo per share. The final dividend would therefore be N14.6 billion, which comes to N1.83 per share.
An analysis of the company’s results showed that it recorded a net revenue of N324.38 billion for the 2018 financial year as against N344.53 billion recorded in 2017.
Bel explained that the marketing and distribution expenses for the 2018 financial year increased by 4.8 per cent relative to the cost incurred in 2017, and administrative expenses also experienced a 4.4 per cent declined from N21.75 billion to N20.78 billion, which was largely informed by elimination of bad costs.
He also disclosed that though the excise duty tariff imposed by federal government at 43 per cent increase took serious toll on the business, it was difficult for the company to pass the cost to consumers in view of weak purchasing power.
A further analysis of the company’s audited results showed that profit after tax increased sharply from N14.79 billion, to 19.43billion between the third quarter and the fourth quarter of the 2018 financial year respectively.
Borrut Bel stated that despite the double digit inflation and other operating challenges which affected the company’s performance, the impact was reduced by cost-saving measures deployed through cost leadership initiatives.
