Transcorp, three others seek N32.47bn from capital market

Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema

Transnational Incorporated Plc. and three other listed firms have secured the approval of the Nigerian Stock Exchange to raise about N32.47bn from the capital market.

The other three companies are Sterling Bank Plc., Wapic Insurance Plc. and Resort Savings and Loans Plc.

The report showed the companies planned to raise the amount by way of rights issue. Since the market picked up at the beginning of the year, quoted companies have indicated their interest to raise money from the market through the existing shareholders.

The approvals for the four firms, it was learnt, were given by the NSE’s Quotations Committee Management, although some of the instruments had yet to be listed on the NSE’s Daily Official List.

Transcorp received approval for its application to raise N12.906bn through a rights issue of 12.906 billion ordinary shares of 50k each at N1.00 per share.

BGL Securities Limited, UBA Stockbrokers Limited and TRW Stockbrokers Limited are brokers to the offer, while BGL Plc. and UBA Capital are the issuing houses.

Sterling Bank Plc. received approval to raise N12.5bn through a rights issue of 5.88 billion shares of 50 kobo each at N2.12 per share.

The stockbroker to the issue is Cardinal Stone Securities Limited, while Sterling Capital Markets Limited is the issuing house to the deal, which is billed to close on July 31, 2013.

Wapic Insurance Plc. is seeking to raise N3.51bn from the capital market and has received approval for its rights issue of 6.35 billion ordinary shares of 50 kobo each at 55 kobo per share to existing shareholders.

Marina Securities Stockbroking Services Limited and BGL Securities Limited are the stockbrokers and issuing houses to the offer, which opened early in June and closed on July 5, 2013.

Resort Savings and Loans has on offer 3.2 billion shares of 50 kobo at 51 kobo per share, and one-for-three rights issue of 3.7 billion shares at 50 kobo per share. The company is seeking to raise a total of N3.5bn and has received the requisite approval for the offer.

The NSE said it had been involved in efforts aimed at increasing the confidence of companies to source funds from the equities market to boost their activities.

It said companies should be encouraged to carry out initial public offers and rights issues from the market, adding that this would boost activities in the market.

The Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri, recently reiterated the importance of the companies raising funds from the market, especially those in the Alternative Securities Market segment of the economy.

He added that this was essential to national growth hence the need to have them participate fully in the market.

Jalo-Waziri said, “The NSE is a staunch believer in the critical role of emerging enterprises in a developing economy, and as such, we have taken the bold move of providing a platform for sustainable growth and development of these companies.

“The ASeM Board will allow issuers, especially indigenous companies, the opportunity to inject relatively low cost and long term capital into their businesses through flexible rules that recognise their growth potential rather than the size of operation.”

The Head, Legal Division, NSE, Mrs. Tinu Awe, also recently announced that the Exchange would introduce whistle-blowing to ensure full compliance by both companies and operators with its rules and regulations.

Awe said the aim was to strengthen the NSE regulatory framework to protect market integrity and attract more companies to take advantage of the market to raise funds.

She reiterated the Exchange’s commitment to building a strong regulatory framework that would protect investors and restore their confidence in the bourse.

Awe said the NSE recently introduced X-Compliance and Brokers Trak reports to ensure that quoted companies and stockbroking firms disclosed their transactions as and when due