Market capitalisation of eight Nigerian firms on the LSE hits $6.535bn

Eight Nigerian companies that listed their shares on London Stock Exchange (LSE) are now worth about $7 billion. This companies which were able to meet the stringent listing conditions of the stock exchange which has existed for about 318 years include Guaranty Trust Bank (GDR), P Z Cussions, Seplat Petroleum Development Co Ltd, Diamond Bank (PSM), LEKOIL ltd, Eland Oil & Gas Plc and SIRIUS Petroleum Plc.

Further details show that 15 investors have invested in the Nigerian listed companies in LSE. These companies have a total market capitalisation of $6.535 billion as at August 2016.

Senior Manager, Equity Primary Market, LSEG, Ms Anne Moulier who revealed this at the London Stock Exchange said LSEG was also making efforts to increase access to finance for businesses and encourage investments that would have more transformative effect on African economy.

Moulier who disclosed this to select Nigerian Financial Journalists’ on courtesy visit to the Exchange recently in London said it had become necessary to help the growth of SMEs in the continent. She explained that the Group intends to replicate in Africa its current initiatives tagged 1000 companies to inspire Britain and 1000 companies to inspire Europe respectively.

Moulier said similar initiative which is hoped to begin in Africa next year would be a landmark report identifying the continent’s most exciting and dynamic small and medium sized enterprises (SMEs).

She said the selection criteria for the 1000 of the fastest growing SMEs will require companies to have shown not just growing revenue over the past four years, but also to have outperformed their sector peers.

Moulier said the Exchange have the fund to deploy to companies to enable it grow, but how to locate the viable ones led credence the initiatives.

“There is about $2 trillion for international equity of which about 40 per cent is in UK. We have a pull of money that needed to be deployed,” she said.  Moulier said the LSEG decided to be collaborating with the emerging markets in order to achieve global visibility.

“We are working with Nigeria and Morocco Stock Exchanges in various levels. In Morocco, we just signed an agreement, tagged ‘Elite Morocco for Private Companies’ to help them grow their business. Our collaboration with Nigeria which is very important to us and has been on market level,” she said.

Head of India, Africa and Middle East for Primary Markets-Equity and Debt, Jasmine Arora said LSEG has about 2,300 listed companies with aggregate market value of $7 trillion.

He listed benefits of listing on LSEG to include access to deepest pool of international capital in the world, proven level of sustained liquidity, quality of advisory community and sell side research coverage, choice of markets to cater for all sizes and stages of company, among others.