BY David Oputah
The shares of Ikeja Electricity Distribution Plc (IKEDC) and the Ibadan Electricity Distribution Plc (IBEDC) can now be traded on the National Association of Securities Dealers (NASD) Over-The-Counter (OTC) market, as both companies and seven others have been admitted to the NASD platform.
In a statement released on Monday, the NASD revealed that the development had increased the number of tradable securities on its (OTC) market for unlisted securities to 82, saying explaining that the decision to admit more securities for trading was in line with its objectives to expand transparency around the trading of unlisted securities.
“Investors can immediately trade these shares on our platform through any of our participating institutions,” NASD said.
“Shareholders who wish to trade their shares should approach a participating institution who can trade on their behalf in an open and transparent market.”
It said that all the new securities on the platform were admitted after they were confirmed eligible to trade on the OTC market by the Securities and Exchange Commission (SEC).
In all, nine companies were admitted to the NASD platform:three utilities companies, three financial companies and three consumer goods companies.
They are Afam Power Plc, Arm Properties Plc, Bam Microfinance Bank Plc, Bankers Warehouse Plc and Fan Milk Plc.
Others are Fumman Agric Product Industries Plc, Ibadan Electricity Distribution Plc, Ikeja Electricity Distribution Plc, and Lacasera Company Plc.
Inaugurated in July 2013, NASD is an alternative trading platform created by the National Association of Securities Dealers to bring more liquidity to Nigeria’s capital market.
The NASD OTC platform is an electronic inter-dealer quotation system that displays historical price data, current price quotes, and market depth information on all long-term securities registered by SEC but not listed on any other exchange in Nigeria.
The platform provides an avenue for securities to be traded without the issuer being listed, thereby providing more transparency and ultimately liquidity to the shareholder and the capital market in general.
It facilitates transactions through two independent trading platforms, which are the leased trading platforms recently acquired by the Nigerian Stock Exchange (NSE) from Nasdaq OMX, and the bi-lateral inter-dealer trading system (BITS), which allows trades to be conducted and consummated between select participating institutions.
NASD is currently owned by capital market operators in Nigeria and has an authorised share capital of N500 Million. Being a public company however, the shares are freely transferable to any interested investor and may be bought on the OTC market when available.
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