Unlisted securities of no fewer than 237 public limited companies (PLCs) have been identified by the National Association of Securities Dealers (NASD) plc as securities that would shape its Over-The-Counter (OTC) market in 2014.
The unlisted securities which NASD plc, promoter of the trading network identified would shape its OTC market in 2014 are Abeokuta Golf Resort plc, Abplast Products plc, Abuja Electricity Distribution plc, Abuja Technology Village Company plc, Acorn Petroleum plc, Afam Power plc, Afcott Nigeria plc, Afprint Nigeria plc, Afren plc, Africana First Publishers plc, AG Homes Saving & Loan plc, Agip Nigeria plc, Air Liquide Nigeria plc, Albarka Air plc, Alliance & General Insurance plc (on suspension), Allied Energy plc, Alpgam Energy plc, and Anambra Aluminium Products plc.
Others are Antonio Oil plc, Aoteoil plc, Arable Crops Development and Marketing Company Nigeria plc, Arm Life plc (Crystalife plc), ARM plc, Arm Properties plc, ASO Radio and Television Services plc, Atlas Nigeria plc, Aviation Development Company plc, Bankers Warehouse plc, Bcn plc, Beachland Construction and Development Company plc, Benin Electricity Distribution plc, Berkeley Group plc, Beverages (West Africa) plc, BGL plc, Bhojraj Industries plc, Bhojsons plc, British American Tobacco, Bua Group, C.E.C. Civil Engineering Company INT`L S.P.A plc, and Camac Energy International.
By identifying these unlisted securities and more, their shareholders who want to trade their securities for cash can now approach the NASD plc accredited stockbrokers. The pricing of securities in this market is determined by forces or demand and supply.
As part of the capital market regulatory efforts to check exchange of securities through the ‘black market’, the OTC market for unlisted securities was officially launched on July 1, 2013 and its activities are regulated by the Securities and Exchange Commission (SEC).
Also, the NASD plc said it had concluded plans to migrate equities trading from the NASD proprietary platform (BITS) to X-Gen, which is NASDAQ-OMX’s proprietary trading platform that gives stockbrokers the ability to seamlessly switch between trading on the NASD OTC market and the traditional Nigerian Stock Exchange (NSE).
BusinessDay also learnt that the NASD plc, promoters of the OTC market for unlisted securities, had adopted the internationally-recognised Industry Classification Benchmark (ICB). The ICB is a definitive system categorising over 70,000 companies and 75,000 securities worldwide, enabling the comparison of companies across four levels of classification and national boundaries.
Other unlisted securities identified by NASD plc are Capricon Marine Technologies plc, Cashlink Leasing plc, Caverton Offshore Support Group plc, Central Securities Clearing System (CSCS) plc, Cfoa Nigeria plc, City Trust Mortgage Bank plc, Cognitive Solution plc, Consolidated Breweries plc, Consolidated Risk Insurers plc, Cooperatehouse Hotel and Towers plc, Countrywide Affordable Estates plc, CR Services Credit Bureau plc, Creative Management & Resources plc, Croesus Expressions plc, Crown Realties plc, Dacitas plc, Dadinkowa Microfinance Bank plc, Dala Building Society plc, Dana Group of Companies plc, Delta State Oil Company plc, Delta State Investment Trust Company plc, Delta Steel Company plc, Design Union Consulting plc, Diezengoff, Digital Safety and Securities System plc, Divine Dominion Investment Plc, Done Right plc, Dufil Prima Foods plc, Dumez Nigeria plc, DVCF Oil & Gas plc, Egbe Micro Finance Bank Nigeria plc, Egbin Power plc, Eko Electricity Distribution plc, Energy Company Nigeria plc, Enpee Industries plc, Enugu Electricity Distribution plc, Etisalat plc, Fada International Solid Minerals and Petroleum Company plc, Famad plc, Fan Milk plc, Ferdinand Oil Mills plc, FHT Ventures plc, First Capital Trust plc and First Oil Energy and Allied Services plc.
The NASD also indentified non-listed securities like First Universal Real Estate Investment Trust plc, Flexible Packaging plc, FNL plc, Food Concepts plc, Foremost Dairies plc, Friesland Campina Wamco Nigeria plc, Fumman Agric Product Industries plc, Gateway Housing Company plc, Gateway Industrial Investment & Finance Company (Plc), Gateway Pharm. Company plc, Gec Petroleum Development Company plc, General Data Engineering Services Nigeria plc, General Telecom plc, GEO-Fluids plc, Geregu Power plc, Globe Reinsurance plc, Golden Capital plc, Grand Towers plc, Grommac Industries plc, GT Homes Limited, Hallmark Paper Products plc, Hebn Publishers plc, Heritage Bank, Ibadan Electricity Distribution plc, Ibeto Group, Ikeja Electricity, Impresit Bakolori plc, Incar Industries Plc, Industrial and General Insurance, Infrastructure Bank Plc, Inlaks Plc, Integrated Microfinance Bank Plc, Integrated Steel Plc, Inter Cellular Nigeria Plc, International Packaging Industries of Nigeria Plc, International Tobacco Company Plc, Intra Motors Nigeria Plc, Jacob Esan Plc, Jagal Group, Jaiz Bank Plc, Joint Komputer Kompany Plc, Jos Electricity Distribution Plc, Jos International Breweries Plc, Jubilee Global Fund Plc, Kaduna Electricity Distribution Plc, Kainji Hydro Electric Plc, and Kajola Integrated Investment Plc.
Other unlisted securities that have been identified as capable of shaping the NASD OTC market are Kano Electricity Distribution Plc, Koarss Global Cement Plc, Kollege Investment Nig Plc, Krabo Nigeria Plc, Lacasera Company Plc, Lento Nigeria Plc, Limca Bottlers Plc, Liz-Olofin & Company Plc, Lucky Fibres Plc, Maitama Amusement Park Nigeria Plc, MDS Logistics Plc, Megatropolis International Plc, Micro and Allied Technologies Plc, Mid-Western Oil and Gas Company Plc, Moneywise Microfinace Bank Plc, Moreno Group Plc, MTN Nigeria, Nampak Nigeria Plc, NASD Plc, National Electricity Transmission Plc, National Risk Fund Plc, National Sport Lottery Plc, Newpak Plc, Nexans Kabelmetal Nigeria Plc, Nicon Insurance Plc, Niger Delta Drilling Fund Plc, Niger Delta Exploration and Production Plc, Nigerdock Nigeria Plc, Nigerdock Offshore Plc, Nigeria Bag Manufacturing Company Plc, Nigeria Cultural Center Plc, Nigeria Inter-Bank Settlement System Plc, Nigeria Reinsurance Corporation, Nigerian Ballpoint Pen Industries, Nigerian Bottling Company, Nigerian Bulk Electricity Trading Plc, Nigerian Mining Plc, Nigerian Sewing Machines Manufacturing Co. Plc, Nigerian Wires Industries Plc, Nipco Plc Nirsal Plc, Niyamco Plc, Nulec Industries Plc, Oando Marketing, Obajana Cement, Obat Refinery and Petrochemical Plc, Ogbodo Giant Plc, Ojokoro Microfinance Bank Plc, Okitipupa Oil Palm Plc, Olorunsogo Power Plc, Oluwa Glass Company Plc, Omotosho Power Plc, Onward Paper Mills, Onwuka Hi-Tek Industries Plc, Orient Petroleum Resources Plc, Pabod Petroleum Development Co. Plc, Pan African Capital Plc, Partnership Plc, Paul-B Nigeria Plc, Ploy Products Plc, Polfa Nigeria Plc, Port Harcourt Electricity Distribution Plc, and Power Holding Company Of Nigeria Plc.
Also in the list are: Prominence Oil & Gas Plc, Propertygate Development and Investment Plc, Pyramids Plc, Regal Property Trust Plc, Resourcery Plc, Rietzcot Nigeria Company Plc, Riggs Ventures West African Plc, Rivers Hotel Plc, Safeline Microfinance Bank Plc, Saidon African Plc, Salem Goldman Integrated Plc, Sapele Power Plc, Sea Petroleum And Gas Company Plc, Shiroro Hydro Electric Plc, Smartcity Resorts Plc, Sona Breweries Plc, Spring Mortgage Plc, Sterling Assurance Nigeria Plc, Sunseed Nigeria Plc, Swap Technologies and Telecomms Plc, Tate Industries Plc, Techdev Energy Plc, Tetrazzini Foods Plc, The Nigerian Security Printing and Minting Plc, Tower Aluminium Nigeria Plc, Towergate Insurance Plc, Trans-Africa Gas and Electric Corporation Plc, Trans Wonderland (Nigeria) Plc, Transmission Company Of Nigeria Plc, Tropical Petroleum Products Plc, Trustfund Pensions Plc, Udeofson Garment Factory (Nigeria) Plc, Ughelli Power Plc, Umarco Nigeria Plc, Unicapital Plc, Universal Investment And Development Company Plc, Value Capital Plc, Vitamalt Plc, Wall Mate Nigeria Plc, Wema Securities and Finance Plc, West African Aluminum Products (WAAP), and Wiggin Teape Nigeria Plc.
“The ICB system is supported by the ICB Database, an unrivalled data source for global sector analysis, which is maintained by FTSE International Limited. Welcome to what promises to be a great new year for NASD and the OTC market in Nigeria. At six months post-launch, we at NASD are pleased to announce a couple of developments that will shape the first half of 2014,” said Bola Ajomale, managing director, NASD plc.
On migration to equities trading from the NASD proprietary platform (BITS) to X-Gen which is NASDAQ- OMX’s proprietary trading platform, Ajomale said: “A second opportunity that arises from the migration of platforms is the significantly increased number of participants who will trade on the system. The new platform will allow custodians a look-in on the market. The Custodian Trade module will be launched on the same cut-over date.”
According to him, the NASD plc project teams have been deployed to ensure a smooth cut-over which is to take place on March 3, 2014. After this date, the internet-based BITS platform will focus more on developing trade activity in other asset classes.
On Industry Classification Benchmark (ICB), the NASD said it has adopted the internationally-recognised ICB, adding:
“All equities will be classified into one of ten (10) industries and one of 115 sub-sectors.” These industries are: basic materials, consumer services, consumer goods, oil & gas, technology, telecommunications, financials, industrials, healthcare, and utilities.
“With this benchmark, it will be easier for stakeholders in the investment industry to compare valuations of listed and unlisted securities. We expect that by extending benchmarking to previously non-benchmarked securities, brokers, analysts and investors will be able to get even better value from unlisted equities,” BusinessDay further learnt from the NASD plc.
By: Iheanyi Nwachukwu
