NSE mi­grates UBA, Se­plat, two oth­ers to elite club

The Punch - - CAPITAL MARKET - ‘Femi Asu

The nige­rian Stock Ex­change on Mon­day an­nounced that it had mi­grated Ac­cess Bank Plc, La­farge Africa Plc, Se­plat Petroleum De­vel­op­ment Com­pany Plc and United Bank for Africa Plc to its Premium Board.

It said the com­pa­nies ap­pliedand­met­the­ex­change’s list­ing re­quire­ments for the board, a plat­form for show­cas­ing com­pa­nies that are in­dus­try lead­ers in their sec­tors.

The Premium Board is the list­ing seg­ment for the elite group of is­suers that meet the Ex­change’s most strin­gent cor­po­rate gov­er­nance and list­ing stan­dards.

The board, ac­cord­ing to a state­ment from the bourse, fea­tures com­pa­nies that ad­here to in­ter­na­tional best prac­tices on cor­po­rate gov­er­nance and meet the Ex­change’s high­est stan­dards of cap­i­tal­i­sa­tion and liq­uid­ity.

The board gives a com­pany ac­cess to a global pool of in­vestors who are fo­cused on com­pa­nies man­aged in con­form­ity to the high­est stan­dards in their tar­get mar­kets, the state­ment said.

Ac­cess Bank, La­farge Africa, Se­plat and UBA have all passed the Cor­po­rate Gov­er­nance Rat­ing Sys­tem and have mar­ket cap­i­tal­i­sa­tion of n347.12bn, n378.60bn, n391.37bn and n374.48bn, re­spec­tively.

They have joined Dan­gote Ce­ment Plc, FBN hold­ings Plc, and Zenith In­ter­na­tional Bank Plc that were mi­grated to the Premium Board in 2015, bring­ing the to­tal num­ber of com­pa­nies on the Board to seven.

Com­ment­ing on the de­vel­op­ment, the Chief Ex­ec­u­tive Of­fi­cer, NSE, Mr. Os­car Onyema, said, “This mi­gra­tion af­firms the strides our listed com­pa­nies are mak­ing to­wards meet­ing the high­est stan­dards of cor­po­rate gov­er­nance and un­der­pins the ro­bust­ness of our mar­ket. The new com­pa­nies have con­sis­tently demon­strated their in­her­ent val­ues to be glob­ally com­pet­i­tive brands and we con­grat­u­late them on the at­tain­ment of this mi­gra­tion.

“Com­pa­nies on the board are al­ready en­joy­ing the high­est lev­els of vis­i­bil­ity and ap­peal to in­vestors look­ing for large com­pa­nies with high­est stan­dards of cor­po­rate gov­er­nance.”

Ac­cord­ing to him, from in­cep­tion to date, the Premium Board In­dex con­tin­ues to out­per­form the bench­mark NSE ASI with the Premium Board record­ing a to­tal re­turn of 84.99 per cent ver­sus the NSE ASI’S 41.79 per cent as of April 11, 2018.

“The Premium Board’s per­for­mance con­tin­ues to re­in­force the sen­ti­ments of both for­eign and do­mes­tic in­vestors on the im­por­tance of cor­po­rate gov­er­nance and sus­tain­abil­ity,” Onyema added.

Se­plat, in a state­ment on Mon­day, de­scribed the mi­gra­tion as his­toric “be­cause Se­plat be­came a listed com­pany just four years ago on April 14, 2014 and with this mi­gra­tion be­comes the first in the oil and gas sec­tor to at­tain the Premium Board.”

Com­ment­ing on the mi­gra­tion, the Chair­man, Se­plat, Dr. ABC Or­ji­ako, said, “Se­plat has al­ways ad­hered to in­ter­na­tional cor­po­rate gov­er­nance best prac­tices in ev­ery area of our op­er­a­tions as nige­ria’s pre-em­i­nent in­de­pen­dent com­pany.

“Con­form­ity with rules and pro­cesses were crit­i­cal to our his­toric dual list­ing on the NSE and LSE in 2014. I am glad to see our com­pany be the first com­pany in the oil and gas seg­ment to at­tain the Premium Board of the NSE.”

To be listed on the Premium Board of the NSE, ac­cord­ing to the state­ment, the as­pir­ing com­pa­nies must at­tain a min­i­mum mar­ket cap­i­tal­i­sa­tion of n200bn as at the date of ap­pli­ca­tion.

The NSE Premium Board and the as­so­ci­ated Premium Board In­dex were launched on Au­gust 25, 2015.

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