The listing:The Nigerian Stock Exchange (NSE) recently witnessed the first listing of the year 2013 with the listing of shares of UBA Capital plc and Africa Prudential Registrars plc, two companies that were spun-off from United Bank for Africa (UBA) plc Group in line with the directive of the Central Bank of Nigeria (CBN).
The historic listings of the two firms simultaneously on the NSE is sequel to the adoption of a mono-line commercial banking structure by UBA plc, as approved by shareholders on Thursday, December 13, 2012, which authorised the divestment and spin-off of non-commercial banking businesses of the UBA Group.
Specifically, a total of 4 billion shares of UBA Capital plc were listed at N1.16, while 1 billion shares of Africa Prudential Registrars plc were listed on the NSE at N1.59 per share.
Oscar Onyema, CEO, NSE, described the listings of the two companies as a milestone in the history of the Nigerian capital market, noting that it came at the right time, “especially now that the Exchange is enjoying confidence of both local and foreign investors.”
Rasheed Olaoluwa, GMD/CEO, UBA Capital, emphasised the potential synergy that would be derived from the component businesses of UBA Capital, which “are investment banking, trusteeship, asset management, insurance and stock brokerage.
“Our overall strategic intent is to build our various subsidiary businesses to be leaders in their respective markets. We believe this can be achieved over the next three to five years.”
Also, Peter Ashade, MD/CEO, Africa Prudential Registrar, affirmed, “the firm links technology to the attainment of its strategic objectives and is one of the market leaders in its industry in Nigeria.
“The company is one of the most profitable in the industry, having achieved 100 percent increase in profit before tax between 2010 and 2011, a performance which it expects to surpass in 2012. Our Return on Equity (RoE) continues to improve year-on-year, a clear indication that management is focused on extracting value from resources and enhancing returns for shareholders.”
Africa Prudential Registrars plc is a leading share registration service provider in Nigeria. It ranks number one in terms of automation and innovation among all corporate registrars in Nigeria. The company has been a pacesetter in the infusion of technology to the conventional Share Registration business model.
“We were the first outfit in our niche to deploy an e-Stock software application in Nigeria. We have also succeeded in compressing the time and space of doing our business through an appropriate blend of technological innovations.
“A close look at our historical financial performance evidently avers the dedication of our management team as the business has remained profitable amid internal and external challenges. The following are key indicators of our financial prowess; increase in revenue from N564 million in 2010 to N1.034 billion in 2012, representing 35.4 percent Compound Annual Growth Rate (CAGR). 100 percent increase in 2012 PBT of N0.640 billion as against 2011 FY performance of N0.311 billion. We have recorded consistent growth in shareholders fund from N1.6 billion in 2010 to N2.3 billion in 2012, to help sustain our business and increase profitability. Our Return-on-Equity (RoE) continues to improve year-on-year; a clear indication that management is focused on extracting value from resources and enhancing returns for shareholders. Growth in earning per share among other strong variables evidencing our ability for better performance in future,” Ashade added.
“Without doubt, the indicators above coupled with our altruistic workforce clearly depict our ability to consistently grow our business and maximise shareholders’ wealth. As shown in our performance figures above, our financial objective is consistent return on our shareholders’ investment. Our track record till date speaks volume. Our first quarter 2013 financial projections have been forwarded to the NSE. We reiterate that our key success factors have been the quality of our people, technology, and processes. There is no doubt that these factors will enable us to continue successfully as a listed company. Therefore, I speak with a reasonable degree of optimism, to begin to look forward to what the New Year will bring as we continue the trend of leading the change in our industry,” he noted.
Potential for shareholders:
According to him, for instance, since 2007, it became possible for shareholders, stockbrokers and our clients to interact with the systems, while monitoring their portfolios from remote locations. We complement traditional share registration with e-share registration services.
Currently, the company has 31 clients in its portfolio. The pedigree and experience of the young management team of the company have significantly impacted positively on the business, as reflected in the historical financial trend and which we believe will continue in the foreseeable future. The board of directors also consists of professionals from different fields with undisputed wealth of experience in the business world.
He further told market stakeholders that: “Generally, the share registration business in Nigeria has been viewed as a back-office function for a very long time. Also, there has not been any significant technology differentiation in the market. This is why service differentiation is difficult among operators in Nigeria.
“However, this trend is fast changing, especially as Africa Prudential Registrars is blazing the trail. We launched our online share registration portal since 2008, the first of its kind in Nigeria, and have since been improving our processes and quality of service to our clients.”