Search for long-term funding drives N5.1trn in new NGX listings

BY MOTOLANI OSENI

The Nigerian Exchange (NGX) experienced a significant boost in 2024, as three prominent companies raised a combined total of N5.1 trillion through new listings, driven by the need for long-term funding to support their growth aspirations.

Transcorp Power Plc, Aradel Holdings Plc, and Haldane McCall Plc made their debut on the NGX, collectively adding substantial value to the Nigerian capital market. This influx of new listings deepens market liquidity and enhances the tradability of stocks, creating a more robust investment environment.

Transcorp Power, a subsidiary of Transnational Corporation, listed its shares on the NGX’s Main Board through an introduction, contributing N1.8 trillion to the exchange’s market capitalisation. The move significantly bolstered liquidity and investor confidence. Aradel Holdings followed suit by listing 4.345 billion shares at N702.69, bringing its market capitalisation to N3.05 trillion, while Haldane McCall Plc introduced 3.122 billion shares at N3.84 per share, valued at N13.17 billion.

These new listings are part of a broader trend of increasing capital access for companies aiming to fund their growth. By tapping into the NGX, these firms are positioning themselves to attract long-term investments that will support their expansion and development strategies.

READ ALSO: Why Yar’Adua Reversed Refinery sale to Dangote

Alhaji Umaru Kwairanga, Chairman of Nigerian Exchange Group, highlighted the importance of the capital market in President Bola Tinubu’s vision of achieving a $1 trillion economy. He underscored the NGX’s strategic focus on enhancing infrastructure and broadening investor access, reinforcing its role as a vital platform for economic growth.

Jude Chiemeka, CEO of NGX, reiterated the exchange’s commitment to providing a comprehensive platform for capital raising. He pointed out that the NGX is a multi-asset exchange, currently home to 322 listed securities. “Our platform has facilitated over N5.7 trillion in funding for corporates and governments, with a combined market capitalisation exceeding N106 trillion,” Chiemeka added.

For Transcorp Power, the listing was a historic moment. Tony Elumelu, Group Chairman, stated that the milestone reflects Transcorp’s commitment to driving economic growth and improving access to electricity. He affirmed the company’s focus on transforming key sectors, creating lasting value for shareholders, and contributing to national development.

Dr. Edward Akinlade, Group Managing Director of Haldane McCall, explained that the decision to list was driven by the need to raise long-term funds for expansion. He reassured stakeholders of the company’s commitment to sustained growth, regular dividend payments, and strong investor relations to foster confidence in its future prospects.

With these successful listings, the NGX continues to play a pivotal role in facilitating capital formation and economic growth, while providing companies with the platform they need to access long-term funding for their strategic objectives.