NGX Creates Platform for Price Discovery, Liquidity for Investors

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By Dipo Olowookere

One of the best platforms companies can utilise to meet their strategic business objectives is the Nigerian Exchange (NGX) Limited, the Divisional Head of Listings Business at NGX Limited, Mr Olumide Bolumole, has said.

According to him, the exchange provides “an avenue for price discovery and liquidity for existing and new investors.”

Mr Bolumole, while speaking at the listing of the N5 billion bond of CardinalStone Partners Limited last Thursday, urged organisations to “take full advantage of our products and services to support their growth story” as it would be beneficial to them.

He described the listing of the notes on the NGX as commendable, noting that the “full subscription of the listing recorded demonstrates investors’ confidence in CardinalStone which now better positions the company to sustain its impressive growth in the coming years.”

Last Thursday, CardinalStone listed its papers on the exchange for secondary trading. The debut 5-year series 1 bond was sold under the company’s N10 billion debt issuance programme.

Business Post reports that at the event, the management of CardinalStone was given the honour to close the market with a digital closing gong ceremony.

“Today is particularly exciting for us at CardinalStone because it represents the attainment of our aspiration to list some of the securities in our capital structure on the exchange.

“We are thankful to NGX for giving us the opportunity to list on its platform; without their support, we would not be here today.

“We would like to assure NGX that we are committed to finding ways to leverage its products and services and drive participation in the capital market from other institutions.

“Of course, we appeal to our colleagues in the industry to take advantage of the opportunity to raise capital on NGX just like we have,” the Group Managing Director of CardinalStone Partners Limited, Mr Michael Nzewi, said at the event.

On his part, the Managing Director of CardinalStone Asset Management, Mr Mohammed Garuba, thanked the “NGX for the opportunity to be here today and must give kudos to NGX for facilitating seamless remote trading over the past year; the impact is clearly seen in capital raising activities on the bourse. I must also congratulate NGX on the recent launch of its campaign, The Stock Africa Is Made Of.

“It is indeed an exciting initiative as it has helped to re-engage key players within the capital market value chain.

“While a lot of focus has been on equities in the past, listing a bond is another way to not only raise capital but also improve governance within an organisation, which was our experience.

“We have learnt from this process, and are willing to support counterparts and clients who wish to embark on this journey,” he added.

Prior to the sounding of the closing gong, the Managing Director of ChapelHill Denham Advisory Limited, which was the lead financial adviser/issuing house for the transaction), Mrs Kemi Awodein, expressed appreciation to capital market players.

“I must thank the team at CardinalStone for giving us ChapelHill Denham the opportunity to have led the issuance of their bond listing.

“When we opened the book in 2020, we could not have envisaged that we would have a book in excess of N6 billion but that was the strength of acceptance of CardinalStone on the buy-side and for that, we must thank all our investors,” she stated.

“I must also thank the Securities and Exchange Commission (SEC) for their support through the process; NGX for the opportunity to commemorate this listing; and all professional parties to this transaction – FBNQuest Merchant Bank Limited; FCMB Capital Markets Limited; FSDH Capital Limited, to name a few,” Mrs Awodein added.

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