BUSI­NESS Se­plat list­ing forces NSE to change rule

Daily Trust - - NEWS - From Kay­ode Ogun­wale, La­gos

List­ing of Se­plat Petroleum De­vel­op­ment Com­pany Plc has forced the Nige­rian Stock Ex­change (NSE) to change its cur­rent rule on pric­ing method­ol­ogy to ac­com­mo­date price stock above N100.00.

The NSE ad­vised its stake­hold­ers that there is a la­cuna in its cur­rent rule on pric­ing method­ol­ogy.

On Mon­day, Se­plat was listed in the mar­ket as the first lo­cal oil firm with start­ing price of N576 per share.

Ac­cord­ing to a cir­cu­lar signed by Man­ager, Rules and In­ter­pre­ta­tion Depart­ment of NSE, Oluwa­toyin Ade­nugba, “The rel­e­vant rule, Ar­ti­cle 100, does not set forth a pric­ing method­ol­ogy for de­ter­min­ing the price move­ment where a new se­cu­rity is priced above N100.00 at the time of list­ing. In the cir­cum­stances, there­fore, the Ex­change has de­cided to take the most rea­son­able step in the in­ter­est of in­vestors and the cap­i­tal mar­ket.”

The de­ci­sion of the Ex­change is to treat the newly listed Se­plat se­cu­ri­ties as “Group B” se­cu­ri­ties.

As a “Group B” se­cu­rity, a trade of 10,000 units will lead to a change in the pub­lished price of Se­plat, NSE said.

To pro­vide for sim­i­lar in­stances in the fu­ture, the Ex­change shall seek amend­ment to the Ar­ti­cle 100 of the rules and reg­u­la­tions gov­ern­ing deal­ing mem­bers.

Con­cern­ing the price move­ments and price lim­its, the NSE said “for pur­poses of cal­cu­lat­ing price move­ments and price lim­its, eq­uity se­cu­ri­ties traded on the Ex­change shall be clas­si­fied as group A which shall con­sist of eq­ui­ties with a pri­mary mar­ket maker that are not clas­si­fied in group B; and group B shall con­sist of eq­ui­ties with a pri­mary mar­ket maker, that are priced above N100.00 per share for at least four of the last six months; or new se­cu­rity list­ings that are priced above N100.00 at the time of list­ing on the Ex­change.”

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