The failure of many shareholders in over seventy (70) identified eligible unlisted public liability companies (PLCs) to exchange their shares on NASD Over-The-Counter (OTC) platform could be responsible for a lull in that market.
As part of the capital market regulatory efforts to check exchange of securities through the ‘black market’, Nigeria’s Over-The-Counter market for unlisted securities was officially launched on July 1, 2013 and its activities are regulated by the Securities and Exchange Commission (SEC).
Growing interests in the market attracted about 218 Registered Brokers and 127 Participating Institutions (PIs) but despite that, there are only 38 unlisted securities that are admitted on the NASD till date.
Currently, admitted securities on this platform are Friesland Campina WAMCO Nigeria Plc, Arm Life Plc, Afriland Properties Plc, Central Securities Clearing System (CSCS) Plc, Trustbond Mortgage Bank Plc, Mixta Real Estate Plc, Nigeria Mortgage Refinance Company Plc, Ensure Insurance Plc, NASD Plc, Niger Delta Exploration and Production Plc, Air Liquide Plc, Nipco Plc, Fan Milk Plc, AG Mortgage Bank, CR (Credit Bureau) Plc, Lighthouse Financial Services Plc, and Acorn Petroleum Plc.
Also, the NASD has admitted securities like Dufil Prima Foods Plc, Fumman Agric Product Industries Plc, Free Range Farm Plc, Vital Products Plc, FAMAD Nigeria Plc, Food Concepts Plc, Jaiz Bank Plc, Partnership Investment Company Plc, Golden Capital Plc, Industrial and General Insurance Plc, Spring Mortgage Plc, GEO-Fluids Plc, Riggs Ventures West African Plc, International Packaging Industries of Nigeria Plc, Resourcery Plc, Swap Technologies and Telecomms Plc, Mass Telecom Innovation Plc, Costain West Africa Plc , and Cappa and D Alberto Plc.
The NASD Unlisted Securities Index (USI) decreased by 0.9percent to 660.03 points as at trading week to June 14, up from 666.24 points recorded the preceding trading week. The market’s total capitalisation closed at N446.65 billion.
Aside these admitted securities, BusinessDay’s recent checks revealed that NASD OTC Securities Exchange has since identified about 78 eligible unlisted companies that their shareholders can automatically trade their shares on the OTC market.
Some of the PLCs it said to have registered with the Securities Exchange Commission (SEC) are Investment And Allied Insurance Plc, Nexans Kabelmetal Nigeria Plc, Poly Products Plc, Union Assurance Company Plc, Hebn Publishers Plc, Vital Product Plc, Antonio Oil Plc, Okitipupa Oil Palm Plc, Propertygate Development and Investment Plc, Impresit Bakolori Plc, Wema Securities And Finance Plc, Oando Marketing Plc, Starcomms Plc, 5 West African Alluminum Products (Waap) Plc, Allied Energy Plc, Free Range Farms Plc, Pan African Capital Plc, Afroil Plc, and Nipco Plc.
“Our vision is to become the hub of first call for capital formation in West Africa by encouraging transparency and liquidity in the capital market. We currently trade unlisted public equities and fixed income,” Bola Ajomale, CEO, NASD OTC said recently at an interactive session in Lagos.
“Shareholders who wish to trade their shares should approach a Participating Institution (stockbroker) who can trade on their behalf in an open and transparent market,” according to NASD Plc the promoters of trading network that eases secondary market trading of “all securities of unquoted public companies primarily in Nigeria.”
The market was created to ease capital raising process has growing pool of accredited Authorised Traders and their Participating Institutions, Settlement banks, Clearing systems, private equity and venture capital firms with a view to increasing liquidity in the unquoted segment of the long term funding market.
Other identified PLCs that shareholders can leverage the NASD OTC platform to create liquidity on their shares are Aboseldhyde Laboratories Plc, Abuja Electricity Distribution Plc, Afam Power Plc, Ag Homes Saving & Loan Plc, Albarka Air Plc, Alliance & General Insurance Plc, Alpgam Energy Plc, Aviation Development Company Plc, Bam Microfinance Bank Plc, Bankers Warehouse Plc, Benin Electricity Distribution Plc, Capital Bancorp Plc, Clarion Off-Dock Global Services Plc, Dala Building Society Plc, Dana Group Of Companies Plc, Delta Glass Company Plc, Dvcf Oil & Gas Plc Oil & Gas, Eko Electricity Distribution Plc, Enpee Industries Plc, Enugu Electricity Distribution Plc, Eric-Dinamics Plc and Fan Milk Plc.
Though not all PLCs must be listed but they must have at least minimum of 50 shareholders. Some of them are First Capital Trust Plc, General Telecom Plc, Geregu Power Plc, Ibadan Electricity Distribution Plc, Ikeja Electricity Distribution Plc, Incar Industries Plc, Infrastructure Bank Plc, Inter Cellular Nigeria Plc, International Packaging Industries of Nigeria Plc, Jos Electricity Distribution Plc, Kaduna Electricity Distribution Plc, Kano Electricity Distribution Plc, Krabo Nigeria Plc, Lacasera Company Plc, Lagos Building Investment Company Plc, Lead Capital Plc, Lucky Fibres Plc, Moukhtar And Mama Plc , Newpak Plc, Nigerdock Nigeria Plc, Nigerdock Offshore Plc, Nigeria Mortgage Refinance Company Plc, Nigerian Ballpoint Pen Industries Plc, Nigerian Police Mortgage Bank Plc, Nigerian Wires Industries Plc, Notore Chemical Industries Plc, Olorunsogo Power Plc, Oluwa Glass Company Plc, Omotosho Power Plc, Onward Paper Mills Plc, Osun Sukuk Company Plc, Port Harcourt Electricity Distribution Plc, Sapele Power Plc, Tropical Petroleum Products Plc, Ughelli Power Plc, Umarco Nigeria Plc, and Yola Electricity Distribution Plc.
