NASD OTC rights issue oversubscribed by 27.2%

By Nkiruka Nnorom

NASD OTC Securities Exchange Plc, yesterday, disclosed that it’s N165.45 million Rights Issue was oversubscribed by 27.22 per cent. The Exchange also said it earned N32.2 million as fees and commissions for the financial year ended December 31, 2016.

Addressing shareholders at the 4th Annual General Meeting, AGM, in Lagos, the chairman, Mr. Olutola Mobolurin, said that funds raised from the Rights Issue would be deployed, in part, in securing a much more ‘fit for pocket’ trading platform and investments complementary to the development of the market. He stated that the Exchange recorded 121 per cent increase in the number of trades executed on the NASD platform during the year, saying that the increase was driven by a 33 per cent rise in the number of admitted securities, 25 per cent increase in authorised traders and a 12 per cent increase in participating institutions.

According to him, NASD admitted eight new securities during the year to close the year with 32 securities and commercial bond trading in the second half of the year with bonds worth N9.6 billion traded. He, however, said that the Exchange recorded drop in  activity due to the slow-down in economic activities and weak investors’ appetite with volume and value traded declining by 58 per cent and 91 per cent respectively.

As at December 2016, 799.94 million shares worth N4.68 billion were traded in 4,857 deals in 2016 compared to 1.89 billion shares worth N50.92 billion traded in 2,151 deals in 2015.

 

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