AT A GLANCE: Airtel, Dangote Cement… 13 Nigerian companies above N1trn market cap

The list of trillion naira companies in the Nigerian stock market has increased to 13 as of Tuesday after a surge in Nigerian banks’ share prices.

Investors have been flocking to the Nigerian stock market in search of returns, leading to the bourse’s all-share index (ASI) appreciating by 11 percent or 8,269 basis points in the first two weeks of 2024 and making Nigeria the second best-performing stock market in the world behind Argentina.

The development comes as Nigerian equities surpassed their European, Middle Eastern, and African counterparts in 2024 — driven by pension funds and institutional investors anticipating record profits from lenders booking revaluation gains.

Consequently, membership of the trillionaire club in Nigeria’s bourse has increased with the United Bank for Africa (UBA), Access Holdings, and First Bank of Nigeria (FBN) Holdings making their way in.

The trillionaire club was also recently expanded with the entry of Geregu Power and Transcorp Hotels.

TheCable looks at companies that have crossed the N1 trillion threshold and their growth from December 29, 2023, to January 16, 2024.

NIGERIAN FIRMS ABOVE N1 TRILLION MARKET CAPITALISATION

AIRTEL AFRICA 

The telecommunications company has the highest market valuation in the Nigerian bourse, leading with N7.51 trillion.

In the last three weeks, Airtel’s market valuation increased by N424.67 billion from N7.09 trillion reported at the close of last year.

The increase was driven by a 5.98 percent growth in the company’s share price, which stood at N2,000 as of January 16, 2024, compared to N1,887 reported by the equity on the last day of trading in 2023.

Airtel, which is one of the two telcos listed in the Nigerian stock market, has the third largest telephone (60.16 million) and internet (42.96 million) users in the country as of August 2023.

DANGOTE CEMENT

Dangote Cement, on Tuesday, recorded N7.01 trillion market capitalisation at the close of trading on the Nigerian stock exchange.

The cement producer held on to the second spot after its valuation increased by N1.5 trillion from the N5.45 trillion market capitalisation reported on December 29, 2023.

This is on the back of a rise in the company’s share price by 28.7 percent from N319.9 to N411.9 within the review period.

MTN NIGERIA

While MTN is the largest telco in Nigeria, it is the third most capitalised equity on the Nigeria Stock Exchange (NGX) — ranking two spots behind its market rival, Airtel.

Data from the bourse shows MTN Nigeria has a market capitalisation of N6.04 trillion as of Tuesday, with its share trading at N288.

This is 9 percent or N503.8 billion higher than the N5.54 trillion valuation MTN ended trading in 2023 when its share was hovering above N264.

Although the firm is behind Airtel in terms of valuation, a customer base of 68.03 million internet users and 85 million telephone subscribers put MTN a step ahead in the telco market.

BUA FOODS

BUA Foods ranks fourth in the trillionaire club with N4.09 trillion market capitalisation after the company’s valuation increased by N613.80 billion within the review period.

It had closed 2023 with N3.48 trillion valuation, however, after BUA Foods’ share surged from N193.40 to N227, the market capitalisation rose by 17.63 percent.

The surge in BUA Foods’ share price raised the company’s spot on the trillion naira stock list, from fifth to fourth position within three weeks.

BUA Cement

With N3.81 trillion in market capitalisation as of Tuesday, BUA Cement came in fifth position behind its sister company, BUA Foods.

The cement manufacturer dropped from fourth to fifth position on the list despite recording an increase of N529.97 billion in January.

A 16.13 percent gain in BUA Cement shares was responsible for the rise in valuation, as the price appreciated from N97 reported on the last trading day of 2024 to N112 on Tuesday.

ZENITH BANK

Zenith Bank boasts of N1.49 trillion in market capitalisation — indicating the company is the sixth most capitalised equity on the bourse.

According to data from the stock exchange, the lender’s market valuation improved by N226.05 billion from N1.21 trillion.

This followed the 18.62 percent growth in Zenith Bank’s share price after it jumped from N38.65 to N45.85.

GUARANTY TRUST HOLDING COMPANY (GTCO) PLC

GTCO occupies the seventh position with N1.36 trillion in market capitalisation following an increase of 16.91 percent between December 29, 2023, to January 16, 2024.

The financial institution’s market capitalisation had increased from N1.19 trillion registered on the last trading day last year — a difference of N201.60 billion in three weeks.

Similarly, the company’s share increased in value, closing trading at N47.35 on Tuesday, compared to N40.50 recorded on December 29, 2023.

SEPLAT ENERGY

Seplat made the list with a market valuation of N1.35 trillion. This made the oil and gas company the eighth most capitalised equity.

Unlike its peers in the trillion naira club, Seplat did not record any growth within the review period, maintaining the same valuation it closed 2024 with.

This is due to the company’s share price trading flat at N2,310 in the last three weeks amid low demand for Seplat’s shares.

UBA PLC

UBA, a new member of the trillionaire club, is ranked ninth after a 32.35 percent rise in its share price pushed the company’s valuation above N1 trillion on January 8, 2024.

The bank’s market capitalisation grew by N283.85 billion within the period of review — up from N877.21 billion on December 29, 2023, to N1.16 trillion as of Tuesday.

UBA was able to join the rank after a bullish run in the bourse, with the company’s share price trading upward from N25.65 per unit to N33.95.

GEREGU POWER

Geregu’s market valuation was put at N1.07 trillion on Tuesday, a day after it joined the list of trillionaire stock companies in Nigeria.

The newcomer, occupying the 1oth position, has recorded a 7.51 percent rise in its share price and N75 billion increase in its market capitalisation since December 29, 2023.

With Geregu’s share price rising from N399 per unit to N429, the company’s valuation also recorded an upward movement from N997.5 billion to N1.07 trillion.

ACCESS HOLDINGS

Access Holdings, ranked 12th most capitalised company, is valued at N1.05 trillion.

The financial institution, which joined the list on January 9, 2024, saw its valuation increase by N236.37 billion within three weeks from N822.87 billion.

This is after Access Holdings’ share price increased by 28.72 percent since the beginning of this year to settle at N29.8 from N23.15 per unit.

FBN HOLDINGS

Taking the 13th position is FBN Holdings, which completes the trillionaire list with N1.05 trillion in market capitalisation.

FBN Holdings’ market valuation rose by N208.19 billion from N845.33 billion after the company recorded a 24.62 percent increase in share price.

The company’s trading records showed FBN Holdings’ share price appreciated from N23.55 to N29.35.

TRANSCORP HOTELS

The list expanded to accommodate Transcorp Hotels on January 15, 2024, with the company now valued at N1.02 trillion as of Tuesday and ranked 11th most valuable entity in the bourse.

Within the review period, Transcorp Hotels’ market capitalisation rose by N305.43 billion or 42.49 percent from N718.82 billion.

The NGX data showed Transcorp Hotel’s entry into the list was on the back of a 42.49 percent growth in the company’s share, as the cost of a unit increased from N70.18 to N100.