By Peter OBIORA investadvocate

Nov 01 2010 15.20 GMT

Lagos (INVESTADVOCATE)-Funds said to be trapped in Private Placements (PPs) is estimated to worth about N700 billion.

Emmanuel Ikazoboh, Interim Administrator of the Nigerian Stock Exchange (NSE) made this affirmation today Monday November 01 2010 at the Floor of the Nation’s Stock Exchange in Lagos Nigeria.

 

“The Money said to have been trapped in various Private Placement Offers (PPO) is estimated to be in the region of N700 billion” he said.

 

Ikazoboh made this affirmation while congratulating Cocoa Processors Multi-Trex Integrated Foods Plc (Multi-trex) at their listing by introduction on the Floor of the NSE.

 

“I wish to congratulate this company for keeping to its promise as one of the many Private Companies that raised money through Private Placement Offers (PPOs) with the promise to come and list on The Exchange” he said.

 

He further affirmed that a good percentage of the trapped funds was from the NSE; as some investors sold their stocks to invest in Placements.

 

“And it is interesting to note that a good percentage of the trapped money was from this Exchange as some investors sold their stocks to invest in them as PPO was very promising” the Interim Administrator said.

 

According to Ikazoboh, it was estimated that about 40 percent (40%) of the plunge in equity sector was due to investment in Placements.

 

“Am convinced that the trapped fund if brought back to the Market by listing, the affected companies and the fortune of the Stock Market will be buoyed” he said.

 

The Nation’s Stock Exchange Interim Administrator further affirmed that our Market is steadily growing fast and the NSE is using this medium to call on the other companies who did Placements and  yet to fulfill their promise of listing to urgently do so.

 

This is coming on the heels of listing by introduction of 3,722,493,620 Ordinary Shares of 50 Kobo each at N3.00 per share of Multi-Trex Integrated Foods Plc on the NSE.