The Securities and Exchange Commission (SEC) has said it had approved new issues worth N53.65 billion between January and September.
Statistics by the commission shows that 10 companies indicated interest to access the primary market segment of the Nigerian Stock Exchange (NSE).
A breakdown of the new issues indicated that the new issues dropped when compared with over N400 billion raised in the corresponding period of 2014.
It is reported that the companies that applied for the new issues during the period under review were Union Homes Savings and Loans, Notore Chemical Industries and Fortis Microfinance Bank.
Others are Champion Breweries, Golden Capital, Jaiz Bank, Bankers Warehouse, Afrik Parmaciticulars, Stanbic IBTC Holdings and Riggs Venture West Africa.
NAN also reports that the approvals were for rights issue, special and private placements and Initial Public Offer (IPO).
An analysis of the data showed that Union Homes during the period was given an approval for a special placement of 781.25 million shares worth N5 billion at N6.40 per share.
Fortis Microfinance Bank applied for private placement of 788 million shares valued N1.18 billion at N1.50 per share and Notore Chemical IPO of 371.59 million shares worth N19.59 billion at N52.72 per share.
Champion Breweries applied for private placement of 629.49 million shares worth N1.16 billion at N1.85, while Jaiz Bank was given approval for rights issue of 2.96 billion shares at N1.30 per share, among others.
Commenting on the new issues, Malam Garba Kurfi, Managing Director, APT Securities and Funds Ltd., who lauded the development, said the new issues were encouraging considering challenges in the economy.
He said that current developments in the country such as insecurity, economic instability and uncertainties were affecting investors’ confidence thereby discouraging investment.
Kurfi added that the inability of the Federal Government to release its economic blueprint was affecting both the primary and the secondary markets.
By Pita Ochai