FG, BUA Cement, Emzor, Others Raise N6.7trn from Capital Market
By Dipo Olowookere
Over N6.71 trillion has been raised by the federal government, corporate organisations and others from the capital market through the sale of investment tools like bonds, equities in 2021, with the Nigerian Exchange (NGX) Limited providing the platform for this.
This amount is about to the expanded with the raising of fresh capital by MTN Nigeria, which is offering for sale up to 575 million ordinary shares in MTN Nigeria held by the MTN Group.
This would be done by selling to institutional investors by way of a bookbuild to assist the firm to determine the price of its shares, with the help of investment bankers and to retail investors at a fixed price.
Last week, the telco excited the market when it announced that it has obtained the approval of the Securities and Exchange Commission (SEC) for the exercise.
The bookbuild closed last week, while the sale to retail investors commenced this week and this has cemented the NGX position as the preferred listing destination for companies seeking to raise capital via corporate bonds, equities and even private companies looking to raise public capital.
The N6.71 trillion funds sourced at the market came from Emzor Pharmaceuticals’ N13.7 billion 5-Year Series 1 Fixed rate Senior Unsecured Bond listed exclusively on NGX in April 2021 and is the first public instrument issued by the company.
Also notable is BUA Cement’s debut listing of a N115 billion bond issue, the largest of many corporate debt issuances in the history of the Nigerian capital market.
As earlier stated, MTN Nigeria is joining the fray and the NGX is deploying its electronic platform, Primary Offer, for use in the e-offering of the shares.
Primary Offer will provide retail investors with access to various capital market products and issuances from the convenience of their mobile devices.
The platform reinforces NGX’s commitment to promoting financial inclusion and retail investor participation in the market. With other platforms such as the X-DataPortal, X-Factbook and X-Mobile, stakeholders are increasingly empowered to make sound investment decisions and maximise value.
MTN has certainly had an interesting journey with NGX since it was listed on the platform on May 16, 2019, by the introduction of 20.35 billion ordinary shares at N90 per share, on the Premium Board.
This made MTNN the first telecommunications network provider to be listed on the NGX Premium Board, a listing segment for the elite group of issuers that meet the exchange’s most stringent corporate governance and listing standards.
At the time of the listing, NGX noted that, “Having MTNN 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 MTNN, 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.”
This year has certainly shaped up to be an exciting year for NGX and this MTNN PO is an interesting way to wrap up a year of many milestone achievements.
Stakeholders are excited to see NGX live up to its commitment to be an open and vibrant exchange, constantly evolving to meet the needs of its stakeholders and look forward to many more strategic opportunities like this.