By Peter OBIORA investadvocate

Oct 26 2010 15.47 GMT

Lagos (INVESTADVOCATE)-Emmanuel Ikazoboh, Interim Administrator of the Nigerian Stock Exchange (NSE) had called on companies that did Private Placement (PP) in the last few years to list on the Stock Exchange and abide by good Corporate Governance.

Ikazoboh made this call Tuesday October 26 2010 at the NSE in Lagos Nigeria.

 

Reacting to a question posed by investadvocate, the NSE’s Interim Administrator affirmed that listing requirements are the same globally, the only thing is willingness for company’s to want to abide by the rules” he said.

 

According to Ikazoboh, unless people have the willingness to abide by the rules, “listing requirements are simple and straightforward, if they have any issue, the Exchange is ready to listen and assist in one way or the other” the NSE Interim Administrator affirmed.

 

“However, we do not want companies who would list and yet not prepared to have good Corporate Governance, preparing their financials in a true and fair manner and also to ensure that information gets to the Market at the appropriate time” he said.

 

Ikazoboh said the issue of Corporate Governance cannot be underestimated, “our Exchange has to play in accordance with global standards, therefore, if we want to play in accordance with global standards, we must follow the tenets of a global Exchange” he affirmed.

 

Market operators had affirmed that until recently; the management of the NSE led by Ikazoboh, has intensified efforts to ensure compliance with listing requirements.

 

 

Also the World Federation of Exchanges (WFE) will soon grant the Nigeria’s Exchange full membership following efforts by the Interim Administrator and his team at improving on Corporate Governance issues.

 

 

The WFE is an association of 52 Regulated Exchanges around the globe; having the NSE as an associate member with an observer status over the past years. Only Johannesburg Securities Exchange Limited (JSE) and Egypt Stock Exchange (ESE) are full members of the Federation.

 

This is coming on the heels of reports mid-last week by investadvocate that a Member of Council of Nigeria’s Exchange has advised companies that did Private Placement (PP) to list on the Primary Exchange (PRIPEX) of the NSE prior to full listing.

 

The Council Member who spoke on the condition of anonymity in Lagos Nigeria affirmed 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.

 

He cited instances of companies like Acorn Oil, Beco Petroleum and a couple of others who did Placements and have come to list.

 

The Council Member also affirmed that the PRIPEX is a special window for concluded   Private Placements to be listed on the floor.

 

However, some of the requirements of new listing of Securities in respect of Companies whose Securities are not listed on the NSE are as follows; that application should be made at the earliest possible date in respect of a company that is registered as a Public Limited Company (PLC) and does not restrict the transfer of fully paid shares.

 

Not less than 25% of the issued share capital, the said proportion having a minimum nominal value of N5, 000,000 shall be made available to the public or already be held by the public.

 

The numbers of shareholders are not less than 300 unless as otherwise prescribed by Council.

 

Others are that the securities are fully paid-up at the time of allotment or registration, the resolution(s) of the Board authorising the issue of all Securities for which listing is sought and subsequently allotting same and the resolution(s) of the Board approving and authorising the issue of the prospectus.

 

Also, there will be a written undertaking accepting to comply with the post-listing requirements of The Exchange amongst others.

 

Investadvocate, had reported in an interview that Cocoa Processors Multi-Trex Integrated Foods Plc (Multi-Trex) would be listing at N3.00 come early November 2010 at the Floor of the NSE.

 

The company had in year 2008 sought to raise about N6.0 billion by offering via Placement 2.0 billion Ordinary Shares of 50 Kobo each at N3.00k per share. Leading Issuing House was Skye Financial Services Limited and Joint Issuing House was Goldman Assets Management Limited. Capital assets Limited was Financial Advisers to the Placement.