Exchange Plans Capital Market Expansion

In a bid to expand the Nigerian capital market, the Nigerian Stock Exchange (NSE) has stated its preparedness for companies seeking to raise capital from the Exchange.

In a statement from the Exchange on Friday, made available to newsmen, NSE pans to deepen activities, which will definitely encourage more participation in the market.

NSE proposed to reduce the financial record requirements of companies for listing from five years to three years to enable many companies meet up the standard requirement for listing.

It also added that companies with foreign technical partners could even be considered for listing with a one-year financial record.

Companies having a profit-after-tax of N300 million within three years or N600 million in one year of operation would also be allowed to list on the floor of the NSE.

According to the statement, regulators were targeting telecoms companies, international oil companies and private companies that have long operated in the country.

The statement reported that once this step is achieved in the NSE transformation agenda, Nigerian market would strongly follow South Africa and also present more opportunities for foreign participation.