Revive IPO market, stakeholders urge SEC, NSE

Stakeholders of the Nigerian capital market have called on the Securities and Exchange Commission (SEC0 and the Nigerian Stock Exchange (NSE) to reflect the growth recorded in the equities market with revival of the Initial Public Offer (IPO) market.

The stakeholders, who spoke to Daily Times Nigeria, said that growth in the market should reflect other segments of the market and market confidence, which usually reflects on the vibrancy of the primary segment of the market.

Mr. Okezie Boniface, founder, Progressive Shareholders Association of Nigeria (PSAN), said the equities market has sustained depressed IPO market over the years and need to be revitalized for effective growth of the market.

He told Daily Times that Nigerian investors were caught unawares in the market depression and nationalization of listed companies; and many still dread the market.

“What happened in the market in the past in the banking sector , made local retail investors to be afraid of the market” Okezie said” SEC and the NSE need to fashion a way to see that local investor confidence is restored to drive the primary market and that of the IPO.

Shehu Mallam Mikhail of Constance Shareholders Association, told Daily Times that section of local investors, who in the past, suffered huge loss in the market have developed cold feet to making re-entry and they are also spreading negative hearsay about the market to prospective investors.

He called on the SEC and NSE need to have a coordinated approach in understanding most of the quoted com companies problems before penalize or fine any companies and likewise create an avenue whereby most quoted companies would be a priority in achieving the goal of listing and at which investors would able to build confidence in the quoted companies.

“However, most of the Board of Directors should not be of questionable character whereby investors would not be able to have confidence on the quoted,” Shehu Mallam Mkhail said.

Bonny Amadi