News Column

More IPOs Expected in Capital Market This Year - Onyema

February 6, 2014

Nkiruka Nnorom

The Chief Executive Officer of the Nigerian Stock Exchange, NSE, Mr. Oscar Onyema, has assured that the equity market will be a lot busy this year following flurry of initial public offers expected from prospective companies.

He spoke as one of the panelists at the 5th Standard Bank West Africa Investors' Conference in Lagos.

Onyema said his optimism was borne out of several changes that have occurred in the market in the last three years, adding, 'we have taken steps to facilitate access to the market.'

Besides, he said that the NSE is pursuing an all inclusive growth that goes beyond development in equities market and listing of companies to attracting listing from fixed income instruments, Exchange Traded funds, Futures and Options

He emphasised that the Exchange has since shifted focus from pursuing market transformation to a drive to achieve emerging market status having established a level of stability in the market.

"We are trying to drive growth of the capital market, not just in equities but also in fixed income products, Exchange Traded Fund and very soon, derivatives.

Late last year, we started work on a mid term strategy to move away from transformation now that we believe that we have stability in the market to a strategy that tries to take the Nigerian Stock Exchange from a frontier market to an emerging market," he said, adding, "we have modified our strategy to be underpinned by five pillars, the first one being to attract as many listing across five assets classes as possible.

So, we are not just focusing on companies, but we are also looking at listings from fixed income securities, Futures, Exchange Traded Funds and Options. Then to drive all these, you have to have liquidity in these asset classes."

"We started out with a transformation programme that is based on five pillars targeted at 21st century technology strategy, sound regulatory environment and investors protection initiatives and these are wrapped around an advocacy programme.

And we found out that since 2011 to 2013, the result has been very positive as you can see in the market place," he added.

Responding to comment that unlisted equities have more attraction for investors than listed securities, the NSE boss said, "If you look at our listed companies, it gives you an idea of opportunities that exist in the market.

It does not matter whether the companies are listed or not, however, companies that are listed have gone through thorough scrutiny; they have met certain minimum listing requirements, they have to be transparent, they have to disclose their financials and we will continue to monitor them. Yesterday, we fined a company N1 million for not doing what it was supposed to do. But you don't see such oversight in OTC market."

He added that the NSE presently ranks as one of the fastest growing exchanges around the world having recorded compounded annual growth rate of 26 percent over the past five years.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

Story Tools