Private Placement

[azob2002]

The problem with our NSE and capital market is not the issue of making laws... they always tell us that these laws would be in the interest of the general public but you and I know better... the fact is that the Cabal that controls these things all dine together, they only make the lwas witha few loopholes to exploit..

Just remain guilded at all times.. i would rather make a few bucks from the market than make no money at all...

Just shine ur eyes!!!!

[joy111]

Exchange lists benefits of operators' recapitalisation
By Helen Oji

RECAPITALISATION of capital market operators will bring about fewer but stronger operators in the capital market, the Director-General of the Nigeria Stock Exchange, Professor Ndi Okereke-Onyiuke has said.

At the end of the exercise, according to her, it is expected that the Exchange would have a minimum of 100 stockbroking firms in order to maintain few but stronger firms.

She, however, stated that any stockbroking firm that fails to meet up with the N1 billion capital base, by December 31, 2008 would have its licence revoked by the regulatory authority.

"The N1 billion must remain, it must not vary. It will help to achieve fewer but stronger firms because the volume is so enormous. You are expected to merge with one another. We are expected to have a maximum of 100 out of 180 but preferably 40.

"We will not merger you forcefully, you will do the merging yourself and by the end of December 31 2008, we will recognise only stockbroking firms that have up to N1 billion and those that could not meet up would have their licence revoked."

Speaking further, the NSE boss stated that the council of the NSE, would no longer approve or recognise stockbroking firms as listed companies, noting that any stockbroking firm that wants to establish real estate firm or finance firm should register with different names during listing at the Exchange.

"If you want to do finance house business, you must register a different company and can list that company and not to use "member of Nigeria Stock Exchange as letter headed."

She expressed dismay at the extent of which market operators breach the law guiding private placement.

Okereke-Onyiuke said that before private placement is done, the company looks for interested individuals, makes offer privately with not more than 50 people with a placement memorandum adding that regulatory authorities ought not to recognise private placement, unless memorandum of placement is presented.

In this regard, the Director General said that any company coming to the market for listing by introduction between June and September 1, must present a minimum of five per cent stockbrokers, while after three months, it would attract 10 per cent.

She added that after the listing, the company would not be allowed to come to the market fully after one year.

Meanwhile, stakeholders in the capital market including the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) and the Association of Issuing House of Nigeria (AIHN) have phoned to support the seven-point economic agenda of the Federal Government.

At a briefing yesterday, the representative of the group, Mr. Kayode Falowo, President of AIHN, said the capital market stakeholders are poised to attend the parley to initiate other stakeholders in the economy on the need to finance the economic development programmes of the Federal Government through the various tools available in the capital market.

[BLUEMONEY]

""In this regard, the Director General said that any company coming to the market for listing by introduction between June and September 1, must present a minimum of five per cent stockbrokers, while after three months, it would attract 10 per cent""

Please can someone explain what the DG of NSE meant by the above statement.

[tonidol]

Originally Posted by XXCASH

Oga hispy99,

You are too much ooh, e be like say you no sleep for night.

I see your post through out the night.

E be like say u don forget say time difference dey between Illinois and Naija if na Naija u dey.

[zainabusman]

I dont know whether other members have noticed, but it appears there is a decline in interest in PP's in this forum. The threads in PP's are not as active as they were.

Furthermore, most members seem not be to over the top about the recent PP's eg ENCON. Multiplex, Afromedia etc. This definetely shows members are thinking long and hard b4 committing their hard earned money. This is a postive development.

[BLUEMONEY]

Originally Posted by zainabusman

I dont know whether other members have noticed, but it appears there is a decline in interest in PP's in this forum. The threads in PP's are not as active as they were.

Furthermore, most members seem not be to over the top about the recent PP's eg ENCON. Multiplex, Afromedia etc. This definetely shows members are thinking long and hard b4 committing their hard earned money. This is a postive development.

with all the new rules that the NSE is coming up with everyday, i am not suprised the interest in PP is low becuase most of the laws are not favourable to investors in PP.
The secondary market is also attractive. so i think there is migration of funds there.

[bwalaman]

Originally Posted by zainabusman

I dont know whether other members have noticed, but it appears there is a decline in interest in PP's in this forum. The threads in PP's are not as active as they were.

Furthermore, most members seem not be to over the top about the recent PP's eg ENCON. Multiplex, Afromedia etc. This definetely shows members are thinking long and hard b4 committing their hard earned money. This is a postive development.

Correct observation Zainab, to which I am glad as well… If the NSE ASI has regulation issues, talking interventions, freezes, PO & all associated certificate delivery and verification issues- it is long over due that we think of these PP. Particularly as they relate to Ltds.

Also these PPs suck potential funds from the secondary market most of which is locked / blocked for longer time than in PO issues.

Its part of the education process, I guess- if your assertions are correct, and I hope it is, we are learning. FINALLY!!! Buyer beware…

[creflo]

Originally Posted by bwalaman

Correct observation Zainab, to which I am glad as well… If the NSE ASI has regulation issues, talking interventions, freezes, PO & all associated certificate delivery and verification issues- it is long over due that we think of these PP. Particularly as they relate to Ltds.

Also these PPs suck potential funds from the secondary market most of which is locked / blocked for longer time than in PO issues.

Its part of the education process, I guess- if your assertions are correct, and I hope it is, we are learning. FINALLY!!! Buyer beware…

Good observatoion . for some of us still interested in PPs. I hope this will have an effect on subsequent PPs so the originators can price the PPs more appropriately by factoring the risks involved. recent PPs have been gradually over-priced cos these guys perceive the undue enthusiasm among share neophytes and wanted to take advantage of it. like geoFluids and ENCON

[Michael]

Originally Posted by zainabusman

I dont know whether other members have noticed, but it appears there is a decline in interest in PP's in this forum. The threads in PP's are not as active as they were.

Furthermore, most members seem not be to over the top about the recent PP's eg ENCON. Multiplex, Afromedia etc. This definetely shows members are thinking long and hard b4 committing their hard earned money. This is a postive development.

I am surprised companies are actually bringing out offers in a bear market. It doesn't tell well on their choice of advisers and their business acumen. Secondly, with the new rules, the magic by which companies make their stocks scarce after an IPO may be more expensive and more difficult to achieve and thirdly, Everybody must know that the registrars unlike the police are not your friends.

[saintkayode101]

Originally Posted by knightofdelta

It is true that NSE has not come out with a good plan on how to tackle price manipulations with PP. I don't blame them. I am sure that they have a lot to gain from it though.

To answer your question I will use an example. Transcorp did a PP at N3, it went up to like N9 and it is now N2.XX. AT what price do you think Transcorp will float an IPO if they decide to do that now? I think the one year deal is sound to a large extent. It gives enough room for the real price to show before the company comes to rip investors off again. The problem is there are several loopholes for price manipulation to take place...

There are many forms of price manipulatiuon on the market - there is regulatory price manipulation - NSE market stabilisation policy i.e circuit breaker introduced over the past week is a form of price manipulation, Stock brokers creaming premiums on PPs and ramming by rogues on investment boards can be added to the pot. I believe market force should determine the prices. If the fundamentals and in some instances the level of risk does not suit our taste was should abandon the oppurtunity and move on to teh next one.

[knightofdelta]

Originally Posted by Michael

I am surprised companies are actually bringing out offers in a bear market. It doesn't tell well on their choice of advisers and their business acumen. Secondly, with the new rules, the magic by which companies make their stocks scarce after an IPO may be more expensive and more difficult to achieve and thirdly, Everybody must know that the registrars unlike the police are not your friends.

Who says the police are your friends? The only friend they probably have in SMN is Billions with his billions.

[billions]

Originally Posted by knightofdelta

Who says the police are your friends? The only friend they probably have in SMN is Billions with his billions.

What have i done to offend you...and i cannot fight you since u sabi english pass me.You go finish me if i try am...

Pls, i am only a billionaire by faith ooo

[hispy99]

Originally Posted by billions

What have i done to offend you...and i cannot fight you since u sabi english pass me.You go finish me if i try am...

Pls, i am only a billionaire by faith ooo

Better claim it...me i have claimed by own long time ago.

[Apache]

NSE sets guidelines for new listings
Posted Monday, June 16, 2008


The Nigerian Stock Exchange has set up some new guidelines for companies that want to list their shares by way of introduction.



This is in an attempt to control the immediate upward movement of the share prices of newly listed companies on the floor of the capital market.



The Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, said companies that wanted to list their shares by way of introduction must trade at least five per cent of the shares on the day of listing.



Speaking to stockbrokers and newsmen on Thursday, she said, “The council and management of the NSE has decided that between now and September 1, 2008, any company that is coming to list its shares by introduction must bring at least five per cent of its shares to the floor on the day its listing.



“However, after September 1, companies for listing by introduction must produce at least 10 per cent of their shares, which must be traded on that day. No amount less than that will be acceptable on the floor.”



She stated that this was to further bring sanity to the market and prevent companies from bringing in a small amount of their shares to the floor, thereby creating artificial scarcity of those shares, which could move their prices up.



Okereke-Onyiuke also decried the situation where investors sold massive portions of their shares to invest in private placements. She stated that both the NSE and the Securities and Exchange Commission had nothing to do with these placements.



She said, “The council has also decided that if a company is ready to collect money from the public, it may as well do an initial public offering because both the NSE and SEC do not know anything about private placements. If a company that is doing a private placement decides to list by way of introduction, it cannot come to the market to raise fresh funds, until after a year.



“And when it does, the listing must be done at the price at which the company sold for the private placement. No company can sell beyond this price on the day of its listing.”



The DG said that this period was given so that the regulators could take time to observe what the companies had been doing with the funds raised during their private placements.



She added that the regulators were trying to avoid indiscriminate private placements because in some cases, these companies took advantage of ignorant investors.



The NSE boss, therefore, called on stockbrokers to properly educate investors about private placements before allowing them to invest their monies. - Punch

[billions]

Originally Posted by hispy99

Better claim it...me i have claimed by own long time ago.

I don claim am by faith....but d faith never turn to billion naira.