Listing of power firms can drive capitalisation to N36tr – BGL

Against the backdrop of the recommendation by the National Council on Privatisation (NCP) that electricity firms should approach the capital market for funds, as a key strategy for growth, the Managing Director, Bgl Securities Limited, Mr Sunday Adebola, has said that the firms have the potentials to push the market capitalisation to around N36 trillion if they list on the Nigeria Stock Exchange (NSE), The Nation reports.

He said the listing and performance of Seplat Nigeria Limited on the NSE and London Stock Exchange (LSE) shows that indigenous oil companies can buoy the market capitalisation.

He said Seplat is trading for over N500 per unit share on the floors of the exchange, adding that it is a no mean feat given the fact that the company has not spent a year in the market.

He However, indicated that this capitalisation is based on the ability of the government to facilitate the listing of the firms by putting in place an enabling environment and added that the Pension Commission and the Pension Fund Administrators need to be involved to make the coming of the firms to the market easier.

 

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