Stock Exchange lists Bricklinks Africa
The Nigerian Stock Exchange (NSE) at the weekend listed the entire issued and paid up capital of Bricklinks Africa Plc on its newly created ‘growth board’.
A total of 10 million ordinary shares of N1 each of Bricklinks Africa were listed at N6.26 per share. The shares were listed by introduction on the entry segment of the ‘growth board’ of the Exchange.
The listing followed approval of the application to list the company’s entire issued and fully paid up capital.
The NSE had earlier activated the ‘growth board’ with the migration of four eligible companies to the new board. The four eligible companies included Chellarams Plc , LivingTrust Mortgage Bank Plc, McNichols Plc and The Initiates Plc.
The ‘growth board’ allows small and medium companies with track records of stable operations, growth and minimum corporate governance to list their shares and raise capital through the Nigerian capital market.
The new board is also expected to support the small and medium enterprises (SMEs) with direct access to capital and support services from the capital market. Nigeria Bureau of Statistics (NBS) indicates that SMEs account for nearly half of Gross Domestic Product (GDP) and more than three-quarters of employment.
Besides reduction in costs of listing and compliance requirements, the NSE, in collaboration with various strategic business partners and value added service providers, will provide support services aimed at creating competitive edge for companies on the board.
These support services include pre-listing diagnostics; institutional services such as audit services, financial advisory, legal advisory, corporate strategic advisory; investor relations; analyst coverage, corporate access and corporate governance and customised training.
For a company to be listed on the growth board, it must be a duly incorporated public limited liability company with at least two years of operations, audited financial statements in line with the International Financial Reporting Standards (IFRS) and must have grown its revenue by a minimum of 20 per cent cumulatively in its last two years of operations.
Also, all companies to be listed on the growth board must undertake that their promoters or directors shall retain a minimum of 50 per cent of their shares for a minimum period of 12 months from date of their listing, and that the directors or promoters shall not directly or indirectly sell or offer to sell such securities during that 12-month period.
The framework meanwhile provides alternative requirements for listing for each segment. Under the entry segment, a new business may be considered for listing if it can provide evidence of investment in it by a core investor or a strong technical partner that has a minimum of two years’ operating track record, or a majority shareholder who is either a High Net Worth Individual (HNI) or is a director of a listed company. Under Nigerian rules, HNI is an individual with net worth of more than N100 million.
Besides, companies heading for the entry segment must have market capitalisation of not less than N50 million, a minimum of 10 per cent of its shares available or to be available to minority retail investors and at least 25 shareholders.
Under the standard segment, a new business may be considered for listing if it that can provide evidence of a core investor or a strong technical partner who has a minimum of four years’ operating track record, or a majority shareholder who is a HNI. The company must also have a minimum market capitalisation of N500 million, at least 15 per cent of its shares must be held or will be held by minority retail shareholders and it must have a minimum of 51 shareholders.