Creating liquidity …Transparently Lagos, 23 November, 2014 1 LBS B USINESS B REAKFAST - O...

Creating liquidity …Transparently

Lagos,

11 April 2023

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LBS BUSINESS BREAKFAST- OPPORTUNITIES ON NASD OTC

Creating liquidity …Transparently11/04/23

CONTENTS

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11/04/23

ABOUT US

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• From an Association of securities dealers

• To a SEC licensed OTC market in December 2012

• A PLC owned by market operators

• A self regulatory organisation

• Focussed on building transparency and liquidity‒ Start point is equities

• Vision ‒ To be the hub of first call for capital formation in West Africa

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HISTORY AND FOCUS


Banks

Clearing

Platforms

Participants > 77 Dealing firms> 23 Issuing Houses> 119 Authorised Traders

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ECO-SYSTEM

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Stakeholder Value Added

Issuers Create public visibility

Investors Open market pricing

Market Transparency and liquidity

Private Equity An efficient exit window

Overall Economy Growth

SUMMARY OF VALUE ADD


EXAMPLES OF VALUE ADD

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• Investor confidence:‒ Provides transparency in trading of unlisted securities

‒ Protects investors from unregistered brokers

‒ Provides information on liquidity around unlisted securities

‒ Improved investor / Shareholder relations

• For brokers‒ Reduced counter party risk

‒ A centralized platform for price discovery and specialized market data

‒ Access to broad range of asset classes

• For issuers‒ Ability to raise hybrid funds

‒ Increased corporate visibility which brings economies and savings.


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ENTRY AND TRADING

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ADMISSION OF INSTRUMENTS

• Admitting a Company‒ Issuer will comply with all rules and regulations of the NASD

‒ Price quotes are made on a daily basis

‒ Company will be placed in one of two bands (Blue & Pink)

‒ Full register is dematerialised and lodged in CSCS

• Admitting to trade ‒ Initiated by the Investor

‒ Broker fills an application

‒ Issuer consent is not required

‒ Partial dematerialisation of register

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ADMITTING A COMPANY

• Submit Board resolution to list shares on NASD

• Dematerialise securities and create register in CSCS

• Admitting new securities requirements

• Undertake to be bound by the rules of NASD

• Publicly announce listing on NASD

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• Procedure‒ Appoint Issuing House to assist with the listing process (see the List

of the accredited Issuing houses on www.nasdng.com)

‒ Submit completed NASD application form with required

documentation

‒ After due diligence, NASD gives approval in principle to list

‒ Company signs undertaking to abide by rules of market

‒ Share register is dematerialised and sent to CSCS

• Timing is approximately one month

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ADMITTING A COMPANY


• If security meets requirements, ‒ NASD will request security code and ISIN number from CSCS

‒ CSCS will open account with codes within 3 working days.

‒ NASD informs all stakeholders (Registrars, PIs, Issuer, Public) of

admission .

‒ NASD notifies the participating institution of the Security code and

ISIN number for their necessary action.

• Timing is approximately one week

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ADMITTING A SECURITY


NASD NSE DIFFERENCE

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NASD NSE Physical trading floor None. Trade is online 13 across Nigeria

Participant codes Starts with 4…. Starts with a letter

CHN Starts with D….. Starts with C….Regulator of Issuers SEC not NASD SEC and NSE

Stocks introduced by Individual shareholders AGM approves

Price limits None Daily cap

Symbol Code Starts with “SD” No unique identifier

Settlement banks Six (6) Many

Trading hours - 9:30 a.m. to 3:30 p.m. 9:30 a.m. to 2:30 p.m.


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OTC MARKET OPPORTUNITIES

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CURRENTLY TRADING ON NASD OTC

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SECURITY Share Capital in Volume Market Cap ARM LIFE PLC

5,785,673,000

15,910,600,750.00

AFRILAND PROPERTIES PLC

250,000,000

137,500,000.00

BGL PLC

12,000,000,000

46,800,000,000.00

CONSOLIDATED BREWERIES PLC

496,071,617

45,142,517,147.00

CENTRAL SECURITIES CLEARING SYSTEM PLC

5,000,000,000

18,000,000,000.00

FRIESLAND CAMPINA WAMCO NIGERIA PLC

976,335,936

419,824,452,480.00 FOOD CONCEPTS PLC

5,650,000,000

11,243,500,000.00

GEO-FLUIDS PLC

4,257,668,000

6,429,078,680.00

GOLDEN CAPITAL PLC

1,170,324,536

1,170,324,536.00

INDUSTRIAL & GENERAL INSURANCE PLC

14,231,238,000

7,115,619,000.00

JAIZ INTERNATIONAL PLC

4,014,429,720

4,616,594,178.00

NIGER DELTA EXPLORATION & PRODUCTION

145,780,311

45,191,896,410.00 PARTNERSHIP INVESTMENT COMPANY PLC

2,875,595,000

5,751,190,000.00

RESOURCERY PLC

2,576,686,039

4,380,366,266.30

RIGGS VENTURES WEST AFRICA PLC

880,394,000

836,374,300.00

SWAP TECHNOLOGIES AND TELECOMMS PLC

2,705,378,000

8,116,134,000.00 TRUSTBOND MORTGAGE BANK PLC

10,945,334,000

13,134,400,800.00

TOTAL

73,960,908,159

653,800,548,547.30


FUTURE OTC OPPORTUNITIES

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• Equity-linked securities

• Cross border investments

• GDRs, NDRs, Multilayered corporate debt

instruments

• Full range of Derivatives

• Venture capital and Private Equity sell downs


SPECIFIC INDUSTRY TARGETS

• Agriculture: Rice milling, Dairy products, PE activity‒ Sector to be launched by December 2014

• Power: GenCos, DisCos pre-listing

• Technology: Estimated requirement of ₦1.3trn

• …

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SUMMARY OF FAQS

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NASD/PI FAQ

• Q: WHAT IS NASD?

• A: NASD is an acronym for National Association of Securities Dealers. It is

focused on providing a technologically driven trading platform where

securities not listed on the Nigerian Stock Exchange ["NSE"] are traded.

• Q: WHO REGULATES NASD?

• A: NASD is primarily regulated by the Securities & Exchange Commission

["SEC"] and it is also a self-regulatory organization just like the NSE.

• Q: WHAT IS THE DIFFERENCE BETWEEN NASD AND THE NSE?

• A: The NSE provides the platform for trading on quoted securities while

NASD only deals with un-quoted securities


NASD/PI FAQ….CONTD

• Q: WHAT IS THE DIFFERENCE BETWEEN QUOTED AND UN-QUOTED SECURITIES?

• A: Quoted securities are securities that are listed/traded on an organized exchange like

the NSE while un-quoted securities are those traded in an OTC market.

• Q: CAN ALL UN-QUOTED SECURITIES THAT CAN BE TRADED ON THE NASD OTC

PLATFORM?

• A: No. Before any un-quoted security can be traded, the Company must have met the

following eligibility criteria:

‒ The security must be registered with SEC

‒ The security must be freely transferable - no legal or regulatory restriction

preventing open trades.

‒ The Company must have been in operation for a year.

‒ It must be a public company or be held by more than 50 beneficial owners.


NASD/PI FAQ…CONTD

• Q: HOW LONG WILL IT TAKE TO VERIFY THE CERTIFICATES OF COMPANIES WHOSE

SECURITIES ARE UN-QUOTED?

• A: Certificate verification will generally take about 48 hours from the day the

Broker forwards it to the Registrars. However, in some cases where there are issues

on the sellers signature mandate, it may take a little longer

• Q: HOW DO I KNOW IF A SECURITY IS TRADABLE

• A: Please visit our website for the list of Admitted securities

• https://nasdng.com/market/admitted_securities.php

• Q: WHAT IS MOST EFFICIENT WAY TO GET SUPPORT FROM NASD PLC

• A: For quick help you can logon to our website and have a live chat with us

for instant response. You can also reach us on 01-4605008


CONTACT US

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Office : 9th Floor, UBA House,

57, Marina, Lagos

E-mail: [email protected]

Website: www.nasdng.comLive Chat enabled

Tel. : +234 1 460 5008

Creating liquidity …Transparently Lagos, 23 November, 2014 1 LBS B USINESS B REAKFAST - O...

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