The Nigerian Stock Exchange (NSE) has disclosed that Access Bank Lafarge Africa, Seplat Petroleum Development Company, and United Bank for Africa Plc would be migrated to its Premium Board in coming week.
Through a statement issued by the NSE on Thursday, it explained that four companies qualified for migration after they met the Exchange’s listing requirements for the elite board and that theeir movement would occure coming Monday.
It said: “the four companies will be joining Dangote Cement Plc, FBN Holdings Plc, and Zenith International Bank Plc, who were migrated to the Premium Board in 2015.
According to the statement, from Monday, there will now be seven companies on the Board and the Premium Board is the listing segment for the elite group of issuers that meet the Exchange’s most stringent corporate governance and listing standards.
“The Board is a platform for showcasing companies who are industry leaders in their sectors.
“Premium Board features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity.
“The Board gives a company access to a global pool of investors who are focused on companies managed in conformity to the highest standards in their target markets.
“Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc have all passed the Corporate Governance Rating System (CGRS) and have market capitalisation of N347.12bn, N378.60bn, N391.37bn and N374.48bn respectively,”, NSE said.
Commenting on the development, Chief Executive Officer, NSE, Oscar Onyema, OON said that the migration affirmed strides that the listed companies were making towards meeting the highest standards of corporate governance and underpins the robustness of our market.
He noted that the new companies have consistently demonstrated their inherent values to be globally competitive brands and we congratulate them on the attainment of this migration”.
“Companies on the Board are already enjoying the highest levels of visibility and appeal to investors looking for large companies with highest standards of corporate governance. From inception to date, the Premium Board Index continues to outperform the benchmark NSE ASI with the Premium Board recording a total return of 84.99% versus the NSE ASI’s 41.79% as at 11 April 2018. The Premium Board’s performance continues to reinforce the sentiments of both foreign and domestic investors on the importance of corporate governance and sustainability”, he added.
To be listed on the Premium Board of The NSE, the aspiring companies must attain a minimum market capitalization of N200bn as at the date of application, a minimum score of 70 per cent on the Corporate Governance Rating System (CGRS), and maintain a minimum free float of 20 per cent of their issued share capital or a free float value equal to or above N40 billion, as well as meet other standard listing criteria.
The NSE Premium Board and the associated Premium Board Index were launched on 25 August 2015.