The NASD OTC market place has just recorded its largest single trade with a WAMCO deal worth N40 billion.
Two leading OTC market Participating Institutions: Stanbic IBTC Stockbrokers Limited and BGL Securities Limited swapped 127,184,030 units of FrieslandCampina WAMCO Nigeria Plc equity.
Implications of this are numerous and significant a according to sources.
This is the largest trade by volume ever done on the OTC market – up 17 percent on the previous largest transaction (108million units of IGI in January 2015).
By value (₦40 billion) this is also the biggest trade on the NASD OTC market in its 24 month history.
By block, this represents almost 80 percent of dematerialised shares in WAMCO and in pricing; the deal was done at the prevailing market price of₦315.67 per share indicating that the OTC market price was acceptable to by both buying and selling investor.
Settlement was completed on June 12, 2015 (in line with the market’s T+3 settlement period), the NASD OTC market also confirmed that it can accommodate all sizes of transaction safely, smoothly and efficiently.
NASD OTC was birthed with the objective of developing a market that will provide an opportunity for shareholders to get liquidity.
“Foreign investors have built enough confidence in this market to stake ₦40 billion through it which is a strong endorsement that we met their requirement for transparency and order,” NASD OTC said in a statement.
“We expect more asset managers and institutional investors to follow the lead of these firms and seek the transparency and reliability of the NASD OTC market.”
PATRICK ATUANYA
