Providus Bank Lists Shares on NASD OTC Securities Exchange

By December 28, 2018 Investment News

Providus Bank Plc has listed its shares on the NASD OTC Securities Exchange, opening up opportunity for investors to trade on the shares of the commercial bank.

The shares of Providus Bank Plc were admitted to trade on the NASD OTC by way of security admission, after it was introduced by Vetiva Securities Limited.

Founded in 2016, Providus Bank is licensed as a commercial bank by the Central Bank of Nigeria (CBN). The bank provides innovative financial services that offer customised business solutions and advanced products which meet business and personal needs.

The management of Providus Bank stated that the bank’s competitive advantage in private, institutional, business and personal banking is driven by the philosophy to create support and value for institutions, agencies, Small and Medium Enterprises (SMEs) and High Networth Investors.

According to the bank, its business development strategy also focuses on developing expertise and collaborating to improve the emerging non-oil sector of the Nigerian economy including agriculture, mining, hospitality, e-commerce, and art and entertainment.

Inaugurated in July 2013, NASD OTC Securities Exchange is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the Nigerian Stock Exchange (NSE).

Providus Bank joined many leading companies on the NASD OTC including world leaders like Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts are listed.

Other companies listed on the NASD OTC included NIPCO Plc, Air Liquide Nigeria Plc Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company, Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc and Food Concepts Plc.

Others included Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc, Vital Products Plc, Fumman Agric Products Industries Plc, Free Range Farm Plc, FAMAD Plc, AG Mortgage Bank, Trustbond Mortgage Bank Plc and Mass Telecom Innovation (MTI ) among others.

Official tally at the weekend showed that there were 38 admitted companies at the NASD. There were also 244 stockbrokers and 133 participating institutions at the market.

In an interview with The Nation, Managing Director, NASD OTC Securities Exchange Plc, Mr Bola Ajomale, said listing on the Exchange provides companies with many advantages.

“If you list on NASD, you will get publicity that you exist first and foremost. With the NASD portal, your shareholders are able to get a price quote, so they don’t need to go to the company secretary each time they need to know about the share prices and all. It is a channel by which you can send information to your shareholders. So people tend to invest in companies when they see there is liquidity in the shares and clearly they would be interested in putting more money to it,” Ajomale said.

He noted that before the establishment of NASD, there was a lot of opacity in the market with a lot of people not knowing what was happening.

He said the NASD provides companies with relatively easy way to list their shares as the rules on the NASD are lighter and less stringent to a large extent and easy for companies to comply with.

“The requirements are fairly similar to listing as per the rules by Securities and Exchange Commission (SEC), so it is not a very heavy burden on the companies. Our focus is on the companies; our focus is on the shareholders and ensuring that the companies are responsible to their shareholders. So that’s where our focus is on and that’s why it makes sense for companies to come and list on the NASD,” Ajomale said.

He assured that the NASD will continue to deepen its capacity in line with its commitment to be the driving force for the growth side of the economy.

“We encourage growth in the country, because we are focused a lot on the growth side of the market rather than the big company side of the market,” Ajomale said.

He said the NASD is committed to investors’ protection by providing a disciplined and orderly market noting that the NASD is governed by an extremely professional body that comprises about eight committees that cut across various functions.

“When you want to have a good market, you must have a good governance process. So really the conflict of interest is extremely limited because shareholders are not going to come and say because I’m a shareholder, I want certain things. It doesn’t happen, we have rules. We are governed by rules, processes and procedures,” Ajomale said

Source: The Nation