Nigerian Stocks: From Public Offer To Secondary Market - How Long?

[oseitutu]

What is the actual time duration between purchasing a public offer in Nigeria and being able to trade the purchased shares on the floor of the Nigerian Stock Exchange? I think this is a very poorly regulated aspect of our equity market and it should not be so. Are there any rules/regulations published which anyone here is aware of? What does it say. People lose money on a daily basis because of unexplained delays by Registrars.Comments and votes invited.

[Avocado]

Oh well... the wait just got longer with the CBN having to do some verification...
.

[wanaj0]

Originally Posted by Avocado

Oh well... the wait just got longer with the CBN having to do some verification...
.

I think CBN verification only affects Bank offers.

There are so many reasons for the delay. Even after the conclusion, verification of certficates depend on the registrar. Some are so inefficient that you wonder how come they are still in business.

E-allotment will help.

[oseitutu]

Talking about e-allotment, Dangote said they would do that but all of a sudden, they changed plans and see our situation. 7 months later, certificate yet to be confirmed!

[wanaj0]

Originally Posted by oseitutu

Talking about e-allotment, Dangote said they would do that but all of a sudden, they changed plans and see our situation. 7 months later, certificate yet to be confirmed!

That was actually the fault of Zenith Registrars.

When you buy PO's, only do so for the long term!!!!!!!!

[c kenneths]

And thats why I dont buy PO' s any longer. I just hate delays and having to wait longer than I initially thought.

[oseitutu]

When we look at the Nigerian trend, I mean NSE, it seems 90% of the time after technical suspension, share prices rise for at least a few weeks. Even Dunlop rose to above 8.00 naira. It may make sense to buy once suspension is lifted and sell when you have had a reasonable 20-25% run. That way you avoid delays and may have even hit 100% with your money before the alloted shares are confirmed.Check out DSR. If one managed to buy before 25 naira in the secondary market, one would have done at least 100% at 56 naira and exited while faithful IPOers are still waiting. Also look at Oceanic, it has already appreciated up to 60% post PO. Same for Intercontinental. It is a strategy worth considering for short timers. The only risk is the "UNAVAILABLE SYNDROME" of our stock brokers.

[windywendy]

I'm glad you added the "unavailable syndrome" because you would never have been able to get DSR at N25, for the same reason Afribank, IBTC, Guinea Insurance and a lot of other stocks currently on technical suspension are unavailable at their current prices.

[nichobabe81]

My people,

What is going on with GTBank shares? do we sell now? i heard they will soon come to the market but the price is not going as expected.

What is your advice please!

[oseitutu]

Originally Posted by windywendy

I'm glad you added the "unavailable syndrome" because you would never have been able to get DSR at N25, for the same reason Afribank, IBTC, Guinea Insurance and a lot of other stocks currently on technical suspension are unavailable at their current prices.

Beating this syndrome would only be by buying before technical suspension is instituted. During technical suspension, I wanted to sell FBN, they said impossible. I hope they will be able to buy it for me next week in the secondary market just before technical suspension ends.