11 companies may make NSE’s $1billion premium board

In a bid to enhance its plans to make  the Nigerian Stock Exchange (NSE) a $1 trillion market, authorities at the exchange have concluded arrangements to float a new board to be called Premium Board.
The NSE currently has two boards, the Alternative Securities Market or ASeM and its main board, which has over 188 quoted companies.
THISDAY findings revealed that the new board, which will be launched next month would be driven by stringent corporate governance standards, liquidity and $1 billion minimum market capitalisation.
As at today, only 11 of the over 188 quoted companies on the main board are qualified to be listed on the new board based on the $1 billion market capitalisation criteria.
The biggest among them is Dangote Cement Plc with a market capitalisation N2.897 trillion ($15 billion),  followed  by Nigerian Breweries Plc with a market capitalisation of N973.69 billion ($5 billion).
Others are Guaranty Trust Bank Plc with a market capitalisation of N735.19 ($3.8 billion), Nestle Nigeria Plc N673.75 ($3.4 billion), Zenith Bank Plc has a market capitalisation of N533.11 billion ($2.9 billion), Lafarge Africa Plc  has a market capitalisation of N450.98 billion ($2.2 billion), Ecobank Transnational Incorporated has a market capitalisation of (N360.20) ($2 billion), FBN Holdings Plc has a market capitalisation of N360.20 ($1.9 billion), Forte Oil Plc as a market capitalisation of N239.65 billion ($1.7 billion), Stanbic IBTC Bank Plc with a market capitalisation of N229 billion ($1.6 billion) and Guinness Nigeria Plc has a market capitalisation of N213.08 billion ($1.4 billion).
On the stringent corporate governance standards and liquidity criteria, it is yet to be determined, which of these companies will make if to the premium board when it kicks off. On assumption of office as Managing Director/ CEO of the NSE, Mr. Oscar Onyema had embarked on various initiatives and strategies aimed at repositioning the Nigerian stock market.
As part of the new initiatives, the management had promised to turn out five products in five years to meet a trillion dollar market capitalisation mark in 2016.
Recently, the NSE unveiled added services to draw attention to the listed companies and enhance their performance, while working on identified prospects.
To achieve this, the NSE partnered various local and international organisations to provide services such as: Corporate Access, Investor Relations, Institutional Services, Corporate Governance and Independent Equity Research to enhance the value proposition of listing on The Exchange.

[ThisDay]