Private Placement: List on Primary Exchange Council member advice companies

By Peter OBIORA investadvocate

Oct 20 2010 14.02 GMT

Lagos (INVESTADVOCATE)-A Member of Council of the Nigerian Stock Exchange (NSE) has advised companies that did Private Placement (PP) to list on the Primary Exchange (PRIPEX) of the NSE.


The Council Member speaking on the condition of anonymity in Lagos Nigeria affirmed to investadvocate that the PRIPEX is an Exchange of its own designed to help companies list their equities without spending much funds. “Really a lot of money is involved listing on the Nation’s Stock Exchange, and the PRIPEX has been put in place since year (2009)” he noted.

“These are companies that cannot meet all the listing requirements, but are given room to gradually grow if they list on the PRIPEX,” he said.


As earlier reported, mid year 2009, NSE confirmed that Apex Capital Market Regulatory Institution, the Securities and Exchange Commission (SEC) approved a new window called Alternative Securities Market/Private Placement (ASM/PRIPEX) to replace the Second-Tier Securities Market or Emerging Market.


Prior to this time, the NSE in January year 2009 announced that its Emerging Markets Department had been renamed Alternative Investment Market and Private Placement Exchange (AIM/PRIPEX) Department.


He also confirmed that Funsho Fatobi, Deputy General Manager, Emerging Markets & Special Projects is in charge of the PRIPEX; with the sole aim of encouraging funds tied down to Private Placement to be made public by way of listing.


“In the PRIPEX, companies pay little or nothing to be listed” he said.


The Council Member of the NSE said that if some of these companies had done this prior to this time, the Asset Management Corporation of Nigeria (AMCON); commencing operations soon would have given them the leverage; “AMCON can acquire some of their Toxic Assets, as it is now, they are in ground zero; because they may find it difficult to meet with the listing requirement on the NSE; coupled with the recession” he said.


He again affirmed that most of the Private Placements had dubious intentions behind them; and the promoters may not want to come out public; in order not to be exposed. “Though the genuine ones have been trickling in to list” he said.


He also confirmed that if assessments are done, such companies listed on the PRIPEX can be recommended for listing in the Main Market.

“Take for instance companies like Acorn Oil, Beco Petroleum and a couple of others” he said.


The NSE had said the platform will offer a “special window” for concluded   Private Placements to be listed on the floor. “This Window will be open for 180 days Post-Private Placement offer” the Exchange affirmed.



Comments are closed.