The recent successful capital raising exercise by Seplat Petroleum Development Company Plc with its dual listing on the London Stock Exchange (LSE) and Nigerian Stock Exchange (NSE) is encouraging more Nigerian companies to the LSE, THISDAY was told on Monday.
Seplat recently raised $500 million from the international capital market and became the first Nigerian firm to get dual listing on LSE and NSE. Although there are now eight Nigerian companies listed on the LSE, the Seplat’s listing is propelling more companies to be on the LSE.
Speaking in an exclusive interview with THISDAY in Lagos, the Senior Manager, Primary Markets, LSE, Dr. Darko Hajdukovic, said they are having some positive discussions with a number of companies, especially in the oil and gas sectors. Some of them, he said, would soon get on the LSE.
“We have eight companies already listed on the LSE from Nigeria. But that will increase soon and the next listing will come from the oil and gas space. And that will be very soon because Seplat has shown how successful a company can be.
“The company successfully raised $500 million from the international market including Nigeria. Its shares on LSE have had positive after market performance. There are positive sentiments in both London market and others and we are hoping that the next listing will be very soon,” he said.
Hadjukovic disclosed that the listing of Seplat on LSE has also led to the development of a new infrastructure that enables investors to trade the shares of the company seamless between LSE and NSE on T+3 settlement basis.
“When the shares are traded and settled, it is done in such a way that is a seamless transaction between London and Nigeria so that investors in London and Nigeria can trade in between markets. This is a great testament as how Nigerian markets have developed and allow simultaneous trading between the two markets,” he said.
According to him, the new infrastructure is important for Seplat because the company is the first true dual listing in the market and it has can paved the way for future listings.
“What is very important for Seplat is that they have established an infrastructure in London that other companies that want to pursue dual listing can use. That specific basic infrastructure was developed for settlement and custody side which can be replicated by other companies from Nigeria that want to raise capital from the international market and list in London,” he said.
Hajdukovic said dual listing makes a lot of sense for Nigerian issuers.
“It makes a lot sense because we have always supported the local stock market. We do not want to come across somebody who wants to take over from Nigeria. Rather what we want for Nigeria is value added.
“The company will attract additional investors, who cannot access Nigeria at the moment or those who can access the market but in lesser extent. But by embracing dual listing they will attract money from the portfolio of big investors,” he said.
