By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Stanbic IBTC Asset Management Limited, a wholly owned subsidiary of Stanbic IBTC Holdings Plc on Tuesday listed Exchange Traded Fund 30 units worth N1.447 billion on the floor of the Nigerian Stock Exchange.
Olumide Oyetan, the chief executive officer, Stanbic IBTC Asset Management, mangers of the fund at the listing on the Nigerian bourse said it will still be called ETFs, but with different underlines. ‘’It is a development we hoped to achieve half of year 2015,’’ he said.
According to Oyetan, the floating would be delayed till half year because of the demand of meeting the regulatory requirements from Nigeria’s capital market regulators.
The CEO at Stanbic IBTC Asset Management speaking on the initial public offering (IPO), said the offer was 114.41 percent over subscribed. ‘’We are quite happy with it and we have spoken with some people with responses to buy more if we list the second ETF,’’ he affirmed.
He affirmed that Stanbic IBTC is now at the forefront to promote the use of ETFs which is different from buying direct assets to singular securities as people normally do.
Oyetan noted as funds managers, prospective investors come to inquire from them which stock have potentials to give better returns, ‘’and when you buy one unit here, you have access to the first 30 stocks on the floor of the Exchange (NSE 30 index),’’ he added.
‘’We are going to promote the culture of investing in ETFs in Nigeria. It’s just like taking out some insurance policies out of one’s life and begin to gamble on which other insurance policies would give you adequate cover,’’ he affirmed.
He noted that there is the need for the investors to learn how to invest and invest in the long-term securities like the ETFs, which he described as being cost effective and a way to gain access to our underlines without having to transact on each or any of the 30 underlined stocks.
The company on September 15 opened an initial public offering (IPO) for the Stanbic IBTC ETF 30.
Stanbic IBTC Asset Management opened the offering with 10,000,000 units of the fund available at N100 each at par with a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.
The firm listed a total of 11.447 million units at N100 per share on the floor of the Nigerian bourse.
