NGX  Facilitates N6.71trn Financing In 2021

Nigerian Exchange Limited (NGX or The Exchange) says it has facilitated needed financing of over N6.71trillion raised by governments and corporates across various asset classes in 2021.

Notable among these transactions is Emzor Pharmaceuticals’ N13.7 billion 5-Year Series 1 Fixed rate Senior Unsecured Bond listed exclusively on NGX in April 2021 and being 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.

The Exchange’s records seen by  Nigerian Tribune noted that it has continued to be the preferred listing destination for companies seeking to raise capital via corporate bonds, equities and even private companies looking to raise public capital.

It cited that Market stakeholders were excited to learn last week that MTN Nigeria Communications (MTNN) Plc is taking advantage of this opportunity and has obtained the approval of the Securities and Exchange Commission (SEC) for the offer for sale of up to 575 million ordinary shares in MTNN held by the MTN Group.

Capital is critical for business growth, and the NGX plays a critical role in the capital formation process by mobilizing long-term savings to finance long-term investors and helping issuers and investors meet their objectives.

According to the exchange, attention has now shifted to the equities market where MTNN will float the first Public Offer of 2021.

“The offer commenced by way of a book build to institutional investors (Institutional Offer), and subsequently, a fixed price to retail investors (Retail Offer).

“The Institutional Offer opened on 23 November 2021 to close on 26 November 26, after which a fixed price will be determined for the Retail Offer,” it noted.

Book building is a process that assists companies determine the price of their shares, with the help of investment bankers, when offering them in an Initial Public Offering (IPO).

According to information from the Exchange, the communication giant   has received ‘No Objection’ from the apex regulator, Securities and Exchange Commission (SEC) to establish and deploy an electronic platform for use in the e-offering of MTNN’s public offer.

The electronic platform, Primary Offer, is sponsored by NGX and will provide retail investors with access to various capital market products and issuances from the convenience of their mobile devices.

“Primary Offer 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.

“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,” it emphasized.