The Nigerian Stock Exchange (NSE) says it will migrate Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc to its premium board on April 16.
The Nigerian bourse said the decision is after the companies applied and met the listing requirements for the board.
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 capitalization and liquidity. The Board also 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.
A statement by the NSE Thursday said 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 N347.12 billion, N378.60 billion, N391.37 billion and N374.48 billion, respectively.
They will join Dangote Cement Plc, FBN Holdings Plc, and Zenith International Bank Plc who were migrated to the Premium Board in 2015, bringing the total number of companies on the Board to seven.
Commenting on the development, Chief Executive Officer, NSE, Oscar Onyema, said, “This migration affirms the strides our listed companies are making towards meeting the highest standards of corporate governance and underpins the robustness of our market. 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 percent versus the NSE ASI’s 41.79 percent 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 N200 billion as at the date of application, a minimum score of 70 percent on the Corporate Governance Rating System (CGRS), and maintain a minimum free float of 20 percent 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 in August 2015.