Capital market operators on Monday lauded MTN Nigeria application to the Securities and Exchange Commission for listing by introduction, saying that it will deepen market liquidity.<\/p>\n
The market operators stated this in an interview with the News Agency of Nigeria while reacting to SEC confirmation of MTN Nigeria application for listing by introduction.<\/p>\n
Prof. Uche Uwaleke of Nasarawa State University Keffi, told NAN that the capital market community was in jubilation mood, saying that it would add additional two trillion to the market, when perfected.<\/p>\n
Uwaleke, now a research fellow at SEC, said that the market capitalisation of the Nigerian Stock Exchange would be deepened with the coming of MTN.<\/p>\n
\u201cWe are happy about the development because it will further deepen the market if MTN comes, we are looking at additional N2 trillion being added to market capitalisation and it will make MTN the second largest quoted company in Nigeria after Dangote Cement,\u201d he said.<\/p>\n
Uwaleke said that listing of MTN would help in product diversification at the exchange.<\/p>\n
\u201cThis will help to diversify concentration, we will now have telecommunications, industrial sector and not when it\u2019s only Dangote.<\/p>\n
\u201cIt\u2019s a welcome development and the capital market community is in jubilation mood and we are anxiously waiting for that to materialise, because it will help to deepen the market and give Nigerians the opportunity to partake in the fortunes of MTN,\u201d Uwaleke stated.<\/p>\n
He noted that MTN listing would widen the choices of both local and foreign investors in terms of investment decision.<\/p>\n
\u201cIt is also a door opener for other multinationals to come and be part of success story of Nigerian capital market by seeking listing, especially those in telecommunications sector such as Globacom and Etisalat, among others.<\/p>\n
\u201cWe expect the big four to come and list on the exchange. The same with oil companies, Shell is not yet listed but we also know that in South Africa, the downstream sector is listed on Johannesburg Stock Exchange.<\/p>\n
\u201cCompanies in the downstream sector should be sensitised to list on NSE. It\u2019s not about making it compulsory for them to list, it\u2019s about making them understand why they have to list.<\/p>\n
\u201cApart from the fact that it helps you to raise capital, its an opportunity to contribute to the development of the very place where you are making your money from, the bulk of MTN money is coming from Nigeria.<\/p>\n
\u201cIt will open doors for others to come and list and if they do that, the Nigerian Capital Market will be on its way to becoming African largest stock market, if they all come and list I\u2019m sure we will beat South Africa,\u201d Uwaleke said.<\/p>\n
Also speaking, Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said that it was a good development for the stock market.<\/p>\n
\u201cIt means that capital market is good because when you have such company listed on the exchange, it means stock exchange is very active, it means more recognition for NSE.<\/p>\n
\u201cWith the listing, they will be able to mobilise some funds first and if they are unable to meet their target they can now go further with public offering. But it\u2019s a good development for the capital market,\u201d Tella said.<\/p>\n
He, however, called for review of the nation\u2019s industrial policies to attract more listing on the exchange.<\/p>\n
\u201cThere should be a revised policy so that companies coming will know what and what they should do. The policy will also give them incentives that will attract them to list,\u201d Tella said.<\/p>\n
According to him, capital market operators and the stakeholders, particularly the SEC, will take advantage of this and insist on modernising listing on the exchange, especially on new companies coming to Nigeria.<\/p>\n
Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, said the market had been yearning for such a listing.<\/p>\n
Oni said that the quantum of shares would increase the market capitalisation, thereby making the market more attractive.<\/p>\n
He noted that it was a positive signal to the companies in the oil industry.<\/p>\n","protected":false},"excerpt":{"rendered":"
Capital market operators on Monday lauded MTN Nigeria application to the Securities and Exchange Commission for listing by introduction, saying that it will deepen market liquidity. The market operators stated this in an interview with the News Agency of Nigeria while reacting to SEC confirmation of MTN Nigeria application for listing by introduction. Prof. Uche […]<\/p>\n","protected":false},"author":62,"featured_media":3048,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30],"tags":[313,370,592,329],"class_list":["post-9705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","tag-factories","tag-market","tag-mtn","tag-university"],"yoast_head":"\n