New listings add $201m to Nigeria stock exchange's market cap
The three recently listed equities on the Nigerian Exchange Group (NGX) have made a significant impact, contributing around N179 billion (~$200 million) to the exchange's market capitalization in 2023. These newly listed entities include Chapel Hill Denham's Nigerian Infrastructure Debt Fund, Mecure Industries, and VFD Group.
The NGX has shown impressive performance year-to-date, achieving returns of around 41%, marking its most robust performance since 2020. Notably, the all-share index has surpassed the 72,000 mark, and the market capitalization has reached new heights, exceeding N39 trillion in 2023. Throughout the year, the NGX experienced three new listings, and the sole delisting occurred in July when Ardova Petroleum exited the exchange.
Looking ahead, early 2024 is anticipated to witness more delistings, with GSK Consumer Nigeria and PZ Cussons Nigeria reaching the final stages of their delisting process from the NGX. Despite potential delistings, the NGX's performance in 2023 underscores positive momentum and growth in the Nigerian stock market.
Key Takeaways
During the MTN Capital Markets Day in November, NGX CEO Temi Popoola highlighted the substantial impact of new listings on the exchange's market capitalization over the preceding two years. Popoola stated, "Nigerian Exchange Limited experienced a remarkable surge in market capitalization, with new listings contributing over 10% in the past two years, according to data released by the Exchange." Over this period, several companies were added to the NGX, including BUA Foods Plc, Geregu Power Plc, VFD Group Plc, Mecure Industries Plc, and the Nigerian Infrastructure Debt Fund (NIDF). Concurrently, Ardova Petroleum, Studio Press Petroleum, and Union Diagnostic & Clinical Services were delisted. The data underscores the significant role that new listings have played in driving growth and contributing to the overall market capitalization of the NGX. This trend reflects the dynamism and evolving landscape of the Nigerian capital market.
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