Dipo Olowookere
By Dipo Olowookere
Four companies will be migrated from the Alternative Securities Market (ASeM) board of the Nigerian Stock Exchange (NSE) to the newly established Growth Board.
Business Post learned that the migration will be done on Monday, November 30, 2020, by the exchange this afternoon.
The firms to be moved to the new board are Chellarams Plc, LivingTrust Mortgage Bank Plc, McNichols Plc and The Initiates Plc.
To celebrate this, the organisations would be honoured with a closing gong ceremony at 2:30pm. The firms will have the opportunity to ring the bell to signal the close of trading on the exchange.
The ASeM board provides a platform for small and mid-sized fast-growth companies to raise critical long term capital at relatively low cost to realize their business potential.
It is the essential market for these entrepreneurial businesses to access a pool of investors that have the requisite appetite and understanding of their organisational needs.
Companies listed on the platform are supported by the three pillars of designated advisers, growth ambassadors and the NSE’s institutional services. The regulatory and governance pillars of the ASeM are designed to facilitate the growth and institutionalization of companies listed on it.
In order to make the platform more effective, the NSE in January 2020 transformed ASeM to the growth board with the listing rules approved by the Securities and Exchange Commission (SEC).
The growth board aims to provide a platform for greater global visibility for eligible Nigerian entities and foreign companies, which will engender global capital flows.
According to the NSE rules for listing on the platform, those on the entry segment must have a market capitalisation between N50 million and N500 million, while the standard segment requires a market capitalisation between N500 million and N4 billion or such other amount as may be approved by the exchange from time to time.
To remain on the entry and standard segments, an issuer’s continued eligibility shall be evaluated by the exchange annually in line with all the criteria set out in these rules as amended from time to time, provided that each Issuer shall comply with all other continuing listing obligations as specified under the listings rules of the exchange, including but not limited to submission of quarterly and annual financial statements.
