Long-term Funding Needs Boost N5.1trn New Listings On NGX

The search for long-term funding propelled three companies to approach the Nigerian Exchange (NGX) Limited for N5.1 trillion new listing in 2024, LEADERSHIP Sunday learnt.

The debut listing of Transcorp Power Plc, Aradel Holdings Plc and Haldane McCall Plc on the Nigerian equities market resulted in an additional inflow of N5.1 trillion to the bourse. These entrants have contributed to the deepening of the market.

During the year, Transcorp Power, a power subsidiary of Transnational Corporation has listed its shares via introduction on the Main Board of NGX, adding N1.8 trillion to the market capitalization of NGX and further boosting liquidity in the Nigerian capital market.

Also, Aradel Holdings listed 4.345 billion ordinary shares of 50 kobo each at a price of N702.69, marking a market capitalisation of N3.05 trillion; while Haldane McCall Plc listed 3.122 billion shares at N3.84 per share valued at N13.17 billion on the NGX.

The listing of new issues in the market is expected to deepen the market, improve liquidity and tradability of companies’ shares. Also, it will increase access to capital in order to fund companies’ future growth initiatives.

The chairman of Nigerian Exchange Group, Alhaji Umaru Kwairanga reaffirmed that the capital market was one of the most remarkable tools in achieving President Bola Tinubu’s vision of a $1 trillion economy.

He highlighted The NGX’s strategic focus on enhancing its infrastructure, broadening investor access, and maintaining a global outlook.

Recently, the CEO of NGX, Jude Chiemeka reiterated the Exchange’s commitment to providing a robust platform for capital raising, saying, “the NGX is a multi-asset exchange, not just an equity-based platform. We currently have 322 listed securities on our Exchange, which serves as a viable platform for raising capital.”

He added that, “year-to-date, we have facilitated over N5.7 trillion in funding for corporates and governments, apart from banks’ capital-raising activities. Our platform, with a combined market capitalization of over N106 trillion, offers significant value and opportunities for growth,”

At its listing on NGX, the Group chairman of Transcorp, Tony Elumelu stated that the listing marks a historic moment for Transcorp Power Plc.

“This milestone reflects Transcorp’s commitment to catalysing economic growth and prosperity. We invest in strategic sectors within the economy, transform, expand businesses, and consciously seek ways to share value. Our track record is evident with Transcorp Hotels Plc and now Transcorp Power Plc. We are focused on improving access to electricity for all, creating lasting value for our shareholders and contributing to our nation’s development,” he said.

Also, the group managing director of Haldane McCall, Dr. Edward Akinlade explained that the decision to seek listing was not only for visibility, but to open new opportunities to raise long term funds for expansion.

He captured the company’s strategic vision, growth trajectory and future plan, assuring capital market stakeholders of sustained growth in the company’s net profit, regular dividend payment of 30 per cent of net earnings, maintenance of strong investor relations to reinforce investor confidence and provision of timely information of the company’s activities in line with the Post Listing Requirements of NGX.