NSE migrates four companies to growth board

The Nigerian Stock Exchange (NSE) says it has migrated four companies from alternative securities market (ASeM) to growth board.

The four companies — Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc.

NSE, in a statement on Monday, said the migration follows receipts of applications from the companies requesting to be migrated from ASeM, and consequent screening and approval by its national council.

The growth board was launched on January 29, 2020 to encourage start-ups, small and medium enterprises (SMEs), and companies in fintech industry with high growth potential to seize opportunities of raising long-term capital and promote liquidity in trading their shares.

According to the statement, NSE said its growth board offers relaxed entry criteria with less stringent listing requirements making it easier to attract capital flows along with reduced pre and post-listing obligations.

Commenting on the migration, Oscar Onyema, chief executive officer of NSE, said: “This migration affirms the notable efforts of the four companies to meeting corporate governance standards and underpins the robustness of our market.

“We congratulate and are pleased to migrate Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc to the growth board where they will have access to a suite of value-added services that will give them a competitive edge beyond access to capital.

“We believe that the inclusion of these companies on the all-share index and the growth board index of NSE will provide increased visibility that will attract global investors.”

NSE also inaugurated its associated growth board index at a virtual closing gong ceremony for the migration of these four companies.

The Exchange maintained two boards — the Main Board and Alternative Securities Market (ASeM).

The Main Board targets well-established companies with a demonstrable track record of commitment to high standards of disclosure and corporate governance, while the ASeM Board is a platform with an additional focus on small to mid-sized companies.