UBA, Access Bank, Two Others Join NSE Premium Board

April 12, 2018
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By Dipo Olowookere

The quartet of Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa (UBA) Plc would on Monday, April 16, 2018, be migrated to the Premium Board of the Nigerian Stock Exchange (NSE).

Premium Board is the listing segment for the elite group of issuers that meet NSE’s most stringent corporate governance and listing standards and was launched on Tuesday, August 25, 2015 alongside its associated Premium Board Index.

The board is a platform for showcasing companies who are industry leaders in their sectors and it features firms that adhere to international best practices on corporate governance and meet the exchange’s highest standards of capitalization and liquidity.

The board 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.

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 four companies listed above will now join the premium board after applying and meeting the NSE listing requirements.

A statement issued by the stock market regulator on Thursday disclosed that Access Bank, Lafarge Africa, Seplat and UBA 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 of NSE, Mr 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% versus the NSE ASI’s 41.79% 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.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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