Stock Exchange woos downstream operators to capital market
Says NIPCO, Mobil transaction will enhance investors’ confidence
The Chief Executive Officer, Nigerian Stock Exchange (NSE), Oscar Onyema, has called on oil companies in the downstream subsector to explore opportunities in the capital market.
Listing in the Exchange will enable companies to pool resources, raise the needed funds to expand operatios, while also inviting more shareholders to add value to the management.
Specifically, Onyema, urged the management of NIPCO to reconsider enlisting the company on the NSE, to give more credibility and attract more shareholders to the company.
According to him, there are many benefit that are attached to companies that are listed on the NSE, saying “some of the benefits are the flexibility to raise capital to help in enhancing corporate governance, to make it easier to raise fund from the banking industry, to give sustainability in terms of fund rising among others .“
He expressed confidence in NIPCO’s ability to ensure continued investors interest in the capital market following its recent acquisition of 60 per cent stake in Mobil Oil Nigeria (MON) Plc.
Onyema, who gave the assurance during a courtesy visit with its management team to NIPCO’s headquarters in Apapa, Lagos, described the deal as one of the largest acquisitions in the Nigerian downstream sector.
The NSE CEO said, “we are keen to support businesses to achieve greater success so that they can thrive within the enabling environment, as well as provide organisations with various opportunities to fund their long-term objectives.
“An industry that is expanding and imparted greatly to the growth of the oil and gas sector like NIPCO, needs to be commended for growing the sector and boosting local content development”, he added.
The Managing Director of NIPCO, Venkataraman Venkatapathy, lauded the NSE CEO and his management team, saying, the company imports Automotive Gas Oil (AGO) and Premium Motor Spirit (PMS) directly into the country and distribute the products to fuel marketers across the nation.
With regard to the Mobil Oil deal, he said:“The transition period will also enable NIPCO Plc to effectively manage a smooth and successful completion of the transaction. NIPCO considers this acquisition an important synergy.