17 firms seek N6.1trn on NGX for expansion in 2024
BY MOTOLANI OSENI
Seventeen listed companies turned to the Nigerian Exchange (NGX) Limited in 2024, raising and listing N6.135 trillion through equity capital to fund operational expansion.
This surge underscores the critical role of the capital market in financing long-term business growth.
Capital raising through the capital market typically occurs via debt or equity. While debt involves issuing bonds, equity capital is raised through share issuance, enabling companies to fund growth initiatives.
The stock exchange, as a key component of the capital market, facilitates this process by mobilising long-term savings into productive investments.
According to data from the NGX, the N6.135 trillion raised in 2024 was driven by new listings and supplementary equity issuances.
Among the new listings, Haldane McCall introduced 3.122 billion shares valued at N11.988 billion, Aradel Holdings listed 4.345 billion shares worth N3.053 trillion, and Transcorp Power added 7.5 billion shares valued at N1.8 trillion.
In the supplementary listing category, Jaiz Bank raised N10.048 billion through a private placement. Nigerian Breweries generated N548.733 billion via rights issues, while C&I Leasing completed a debt-to-equity transaction worth N822.917 million.
Other notable listings included Japaul Gold (N20 billion), International Breweries (N516.218 billion), Notore Chemical Industries (N105.792 billion), Wema Bank (N39.946 billion), Tantalizer (N1.073 billion), and Cadbury Nigeria (N7.036 billion).
Additional contributions came from Multi-Trex Integrated Foods (N2.5 billion), Royal Exchange (N1.561 billion), VFD Group (N12.499 billion), Ellah Lakes (N2.186 billion), and Sovereign Trust Insurance (N1.432 billion).
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Analysts emphasised that these equity issuances deepened market activities, enhancing liquidity and accessibility to capital. Senior stockbroker Mr. Tunde Oyediran highlighted that primary market activities are vital for market expansion and noted the positive impact of recent listings on market capitalisation.
“This signal is good for the market. No capital market thrives solely on secondary activities. The surge in equity issuance, including the listing of Transcorp Power and others, shows that investors are recognising the importance of long-term investments in promising companies,” he stated.
Chief Operating Officer of InvestData Consulting Limited, Mr. Ambrose Omordion, attributed the market’s improved competitiveness to deregulation efforts. He observed that increased participation in equity issuances signals growing confidence in the market’s potential.
Meanwhile, Securities and Exchange Commission (SEC) Director-General, Dr. Emomotimi Agama, reiterated the commission’s commitment to creating a robust regulatory framework for borrowing by corporates and governments. He disclosed that new rules for Central Counter Parties (CCPs) would become operational in 2025, ensuring seamless capital-raising processes.
