By Dipo Olowookere
In order to attract global investors as a result of increased visibility, four companies have joined the Growth Board of the Nigerian Stock Exchange (NSE).
The firms; Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc, moved to the new platform from the Alternative Securities Market (ASeM).
The NSE Growth Board was launched on January 29, 2020, to encourage startups, Small and Medium Enterprises (SMEs) and the companies in the financial technology industry with high growth potential to seize the opportunity of raising long-term capital and promote liquidity in the trading of their shares.
The four organisations had filed applications to the exchange requesting to be migrated from ASeM to the Growth Board. Their requests were screened and approved by the national council of the exchange.
On Monday, the migration was completed and commemorated with a virtual closing gong ceremony where the Chairman of Chellaram Plc, Asiwaju S.K. Onafowokan; Chairman of McNichols Plc, Olusegun Layode; Chairman of Living Trust Mortgage Plc, Mr Adebayo Jimoh; Chairman of The Initiates, Joe Ogbonna Anosikeh; Managing Director of Chellaram Plc, Chief S.M. Chellarams; CEO of McNichols Plc, Chimaraoke Ekpe; CEO of Living Trust Mortgage, Adekunle Adewole; and CEO of The Initiates, Reuben Mustapha were given the honour to close the market.
Speaking at the event, the CEO of the NSE, Mr Oscar Onyema, stated that, “This migration affirms the notable efforts of the four companies to meeting corporate governance standards and underpins the robustness of our market.”
“We congratulate and are pleased to migrate Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc to the Growth Board where they will have access to a suite of value-added services that will give them a competitive edge beyond access to capital.
“We believe that the inclusion of these companies on the All-Share Index and the Growth Board Index of the NSE will provide increased visibility that will attract global investors,” he added.
With this development, the four companies have less stringent listing requirements making it easier to attract capital flows along with reduced pre and post-listing obligations.
Aduragbemi Omiyale