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Six of Nigeria’s biggest listed companies have secured places in the FTSE Frontier 50 Index, a development expected to increase the international visibility of the companies as Nigeria prepares to regain Frontier Market status later this month.
The six firms: Guaranty Trust Holding Company Plc, Zenith Bank Plc, MTN Nigeria Communications Plc, Dangote Cement Plc, FirstHoldCo Plc and Aradel Holdings Plc were selected in the latest review of the 50-stock international benchmark.
The changes will take effect after the close of trading on September 18, ahead of the implementation of the revised index from September 21.
The six companies form part of a wider group of 10 Nigerian companies identified by FTSE Russell in its September index review as eligible for inclusion in the broader FTSE Frontier Index Series.
Recall that 10 companies: Aradel Holdings, Dangote Cement, FirstHoldCo, GTCO, MTN Nigeria, Nestlé Nigeria, Nigerian Breweries, Presco, Stanbic IBTC Holdings and Zenith Bank formed part of a wider group of Nigerian companies earlier identified by FTSE Russell in its September index review as eligible for inclusion in the broader FTSE Frontier Index Series.
Only six of the 10 progressed into the more concentrated Frontier 50 Index. These six Nigerian companies represent 46.2 per cent of the 13 new positions being introduced into the Frontier 50 in the latest review, giving the country the largest representation among the new additions.
The development comes as Nigeria prepares to return to the FTSE Russell Frontier Market classification after being moved to unclassified status in September 2023.
The timing is particularly significant for the Nigerian Exchange, which is also preparing for the proposed listing of Dangote Petroleum Refinery.
The refinery plans to raise N2.15 trillion through an initial public offering of 4.1 billion shares at N525 per share.
A successful listing would add one of the country’s largest companies to the domestic equities market at a time when Nigerian stocks are regaining international benchmark exposure.
