Notore targets third-quarter for NSE listing by introduction
by Iheanyi Nwachukwu
June 13, 2018 | 12:45 am| | | Start Conversation
In the next three months, agro-allied firm, Notore Chemical Industries Plc will list its shares by introduction on the Nigerian Stock Exchange (NSE).
BusinessDay learnt that the company will be coming to the market at a price not more than N65 per share and has already obtained the approval of the Nigerian Stock Exchange (NSE) to list its shares.
“They will be listing by introduction in next three months. The price is under N65 per share,” a market source told Business Day.
Listing by introduction implies the company’s shares are listed without a prior Initial Public Offering (IPO).
It implies that the company would usually have raised capital prior to applying to list by introduction, and also must meet the listing requirements – including a minimum number of public shareholders – 300 to list on the Main Board; 51 to list on the Alternative Securities Market (ASeM) and minimum public float (20 percent for the Main Board; 15percent for ASeM.) Notore listing on the NSE will avail legacy investors the opportunity to exit if they wish.
Notore was founded in 2005 by a group of investors led by Onajiite Okoloko. Other members of the consortium include Emerging Market Partners and Orascom of Egypt.
The company bought over assets of the defunct National Fertilizer Company (NAFCON), Onne. NAFCON has a total of 1.61 billion shares valued at N62.50. This gives the company a valuation of N100.7 billion.
“Primary markets activities on the Nigerian Stock Exchange (NSE) in 2018 have not continued the pace of resurgence we saw in 2017, although the pipeline remains strong. The 2017 primary markets activities were dominated mostly by supplementary offers, listings by introduction, debt issuances, mergers and divestments,” Oscar Onyema, chief executive officer, Nigerian Stock Exchange said.
Notore operations are divided into three units: fertilizer, power, and seeds. Early this year, (January), Notore obtained a Free Trade Zone (FZE) license. The FZE located in Eleme, Rivers State is expected to kick off operations in the next two years.
“A resurgent public offering would help deepen equity market, provide more investment options and trigger greater investor participation in the long-run,” according to research analysts at Vetiva Capital Management Limited.
Businesses have expressed renewed optimism about listing on the Nigerian bourse due to improved macroeconomic fundamentals. Telecoms giant, MTN has indicated it will list its Nigerian unit and raise funds through an Initial Public Offering (IPO) this year.
SAHCOL, Nigerian Reinsurance Corporation and Indorama Eleme Petrochemicals are among companies following the footsteps of the MTN Group. They are expected to list in the second half (H2) of the year.
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