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NSE To Migrate Access Bank, UBA, Others To Premium Board

The Nigerian Stock Exchange (NSE) has announced plans to migrate Access Bank, Lafarge Africa, Seplat and United Bank for Africa (UBA) Plc to its Premium Board

A statement issued by the NSE on the proposed initiative indicated that the four companies would be migrated to its Premium Board on 16th April following their fulfillment of the Corporate Governance Rating System (CGRS) requirements for listing on the board.

The Premium Board is a platform for showcasing companies that are leaders in their sectors.

The Board comprises companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity. It also gives a listed entity access to a global pool of investors, who are focused on companies managed in conformity to the highest standards in their target markets.

According to the management of the bourse, the affected companies’ market capitalisation are N347.12 billion, N378.60 billion, N391.37 billion and N374.48 billion respectively.

The NSE stated: “They will join Dangote Cement, FBN Holdings Plc., and Zenith International Bank that were migrated to the Premium Board in 2015, bringing the total number of companies on the Board to seven.”

The NSE Chief Executive Officer of the Exchange, Mr. Oscar Onyema, was quoted as saying that the migration was a proof of listed companies’ strides toward meeting the highest standards of corporate governance, adding that all the entities have consistently demonstrated inherent values to be globally competitive brands.

He said: “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 per cent versus the NSE ASI’s 41.79 per cent as at April 11.

“The Premium Board’s performance continues to reinforce the sentiments of both foreign and domestic investors on the importance of corporate governance and sustainability”, Onyema added.

To qualify for migration to the Premium Board, a listed company must attain a minimum market capitalisation of N200 billion as at the date of application, record a minimum score of 70 per cent on the CGRS; and maintain a minimum free float of 20 per cent of their issued share capital or a free float value equal to or above N40 billion, amongst other standard listing criteria.

The Premium Board and the associated Premium Board Index were launched on August 25, 2015.

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