Operators okay SEC’s move to lure oil coys to seek listing
Capital market operators have lauded the Securities and Exchange Commission (SEC)’s move to lure Dangote Refineries and the Nigerian National Petroleum Corporation (NNPC) to list on the nation’s bourse.
The operators told journalists on Tuesday in Lagos that the move if materialised would boost market capitalisation and as well deepen the market.
They said this while reacting to the SEC’s key initiatives and policies to be pursued in 2022 to enhance capital market growth.
The Chief Operating Officer, InvestData Consulting Ltd., Mr Ambrose Omordion, said that the NGX had been working toward achieving market capitalisation of one trillion naira but was yet to achieve that feat.
Omordion said, “That will be a good move to boost market capitalisation and deepen the market.
“During the time of the former Chief Executive Officer, Mr Oscar Onyema, the goal of the NGX was to grow market capitalisation to N1 trillion and we are not half way there yet.
“So, the listing of Dangote Refineries and NNPC will help toward achieving that and also boost the number of energy compaines listed on the exchange,” he said.
Speaking on reasons for dual listing, Omordion said the move was to make more returns on investments.
According to him, before now most multinationals have been looking for dual listing like Seplat and others listed on the London Stock Exchange as well as the NGX.
Omordion, however, called on SEC and the NGX to further reduce listing requirements to encourage more companies to seek on the bourse.
“Listed companies need incentives to encourage more listing of companies, because having less than 200 companies listed on the exchange is not encouraging,” he added.
Mrs Adebisi Bakare, the National Coordinator, Pragmatic Shareholders Association of Nigeria, said that listing of Dangote Refineries and NNPC would give minority investors more room to be part of those companies.
Bakare, however, expressed concerns over incessant voluntarily delisting from the nation’s bourse.
She urged market regulators to address the issue, specifically seeking for more ways to reduce the trend.
“Our concern is that the regulators should find a way of reducing companies that are delisting from the capital market this year.
“So, as they are thinking of a way to list more companies, they should think of a way to reduce voluntary delisting.
“The only suggestion to the regulators is that they should not be too hard on the companies coming to list on the exchange especially in terms of listing fees.
“Investors need returns on their investments and by the time investors pay more than they are getting in return, it will not encourage the deepening of the market,” she said.
Bakare also urged the NGX and SEC to look at why companies delist from the bourse and fashion out ways to assist them.
“SEC and NGX can look at the causes for delisting and reasons, and find a way of helping those companies.
“They should be lenient as investors are after returns; NGX and SEC should not be too concerned only about what they will get at entry point from companies,” she said.
Director-General of SEC, Mr Lamido Yuguda, had in a statement on Jan. 9 said that SEC would launch the revised version of the 10-year Capital Market Master Plan.
Yuguda added that policies would be championed to incenticize companies such as Dangote Refineries to offer its shares to the public and list on any of the commission’s registered platforms.
