NSE grants waivers to encourage new listings

The Nigerian Stock Exchange will be granting waivers to companies from the oil and gas and mining sectors that plan to list their shares.This is in an apparent bid to boost liquidity and encourage new firms to list their shares on the Daily Official List.The information, posted on the website of the NSE on Tuesday, noted that companies with large capital base were also to enjoy those waivers.The NSE in the draft of the proposed rules made said that mineral companies, comprising mining, oil and gas companies were exempted from fulfilling the requirements that a company seeking listing on the Mainboard must be in operation for at least three years.According to the information, the NSE is also exempting companies with market capitalisation in excess of N500bn from meeting the requirements for public float, which stipulates that the public shall hold a minimum of 20 per cent of each class of equity securities of the company.It added that the interests of the investing public remained key, adding that this would, therefore, inform its decision to grant or reject a companys application for listing.The NSE retains the right to grant a listing to an applicant that does not meet its entire requirement or refuse a listing to an applicant that does not comply with its listing requirement, on the grounds that, in the NSEs opinion, the grant or refusal of the listing is in the interests of the investing public, the NSE explained.In the review of the listing requirements, the NSE is barring companies with loss in the last three years of their operations from seeking listing.Meanwhile, activities on the NSE closed positive on the first trading day of the month with major market indicators rising marginally.Specifically, the market capitalisation of the listed equities rose by N10bn or 0.15 per cent from N6.617tn on Monday, to N6.627tn.Similarly, the NSEs All-Share Index was up by 0.15 per cent or 31.80 basis points to close at 20,934.96 basis points, up from 20,903.16 points recorded the preceding day.Ashaka Cement Company Plc recorded the highest price appreciation of the day, rising by 4.9 per cent or 73 kobo to close at N15.43 per share.On the other hand, Stanbic IBTC Bank Plc lost the highest, shedding five per cent or 46 kobo to close at N8.74 per share.
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