By Peter OBIORA investadvocate

Feb 10 2011 13.52 GMT 

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) reinstated the trading privilege of Afrinvest (West Africa) Limited, a Dealing Member firm at its Trading Floor Thursday February 10 2011in Lagos Nigeria.

 

This was contained in a Statement by Management of the Company Thursday February 10 2011and made available to investadvocate.

 

“The Statement reads thus: Afrinvest (West Africa) Limited is pleased to announce that the Nigerian Stock Exchange (the “Exchange”) has removed the Firm from the list of suspended stockbrokers and restored our trading privileges as of today, 10 February 2011” it said.

 

According to the Company, prior to the suspension, they were already at an advanced stage with several investor groups to raise additional capital. “As a result of the suspension, these efforts was intensified and the steps necessary to implement them were significantly accelerated” the Statement said.

 

Afrinvest affirmed that as a result of new capital injection by existing shareholders and selected new investors its capital position now meets all regulatory Capital requirements.

 

“We are deeply grateful to our clients who not only remained loyal during this very challenging period but in some cases demonstrated their commitment to the Afrinvest franchise by increasing their exposure to the Firm. We also wish to express our appreciation to the Exchange and fellow Stockbrokers for their understanding and support” the Company affirmed.

 

On Wednesday January 19 2011, the Management of the Nigeria’s Exchange released the list of 57 companies suspended from trading on Tuesday January 18 2011, over inadequate shareholders’ funds and posted same on its official website.

 

A statement attached to the list affirmed, “We have today (Tuesday), suspended the following Stockbroking firms for failing to meet the statutory Equity Capital requirement.” the Statement said.

 

Following this, on Friday January 21 2011, Afrinvest issued a Press Release acknowledging that the Firm’s trading privileges were suspended at the opening of business on January 18th 2011 by the NSE due to non-compliance with minimum Capital requirements.

 

However, the firm informed all stakeholders that steps to resolve the Capital inadequacy which led to the suspension were already well underway prior to January 18th. “The Firm is proceeding with all due speed and diligence to finalise these steps and restore trading privileges” the Release affirmed.

 

Again, on Thursday January 27 2011, the NSE in another Statement posted on its website announced that 50 Stockbroking Firms remains on suspension on account of undercapitalisation.

 

Prior to this time, as at Tuesday January 25 2011, the Nigeria’s Exchange affirmed that 10 of the suspended Stockbrokerages have met the requirement; but did not make available details of the 10 as at the time of the announcement.

 

The NSE also affirmed that in a bid to meet this statutory requirement, Stockbroking Firms were making desperate efforts to recapitalise and bounce back to business. Afrinvest was one of them, in its effort to recapitalise; floated a N2 billion Private Placement (PP) to enhance its shareholders’ fund.