Want your firm to be listed on the floor of the Nigerian Stock Exchange (NSE) and don't know how it works? Here are the requirements needed

Want your firm to be listed on the floor of the Nigerian Stock Exchange and don't know how it works? Here are the Requirements:

The last time, I gave out a bit by bit analysis on buying shares and investing in the capital market. Today we shall be having a follow up article which involves requirements needed to get your company, firm or business unit listed on the floor of the Nigerian Stock Exchange (NSE).

According to information presented on their website http://www.nse.com.ng/Listings-site/listing-your-company/listing-requirements, here are the basic requirement that a firm or organisation must meet to be listed on the floor. Enjoy

i. Be registered as a public limited company with no restrictions on the transfer of fully paid

shares

ii. Have a minimum of three (3) years’ operating track record

iii. Have a pre-tax profit from continuing operation of not less than N300 million cumulatively for

the last three (3) fiscal years and a minimum of N100 million in two (2) of these years

iv. Have financial statements which shall be compliant with the applicable SEC rules and covering the last three fiscal years provided that the most recent statement at the time of submission of the application is not more than 9 months old

v. Ensure that a minimum of 20% of the issued share capital is made available to the public and held by not less than 300 shareholders

vi. Have shareholders’ equity of not less than N3billion.

vii. Ensure that if the listing is in connection with an Initial Public Offering (IPO) the promoters and directors will hold a minimum of 50% of their shares in the company for a minimum period of 12 months from the date of listing and will not directly or indirectly sell or offer to sell such securities during that period.

viii. Ensure that the securities are fully paid-up at the time of allotment or registration in compliance with the applicable SEC rules 

ix. Undertake to promptly pay annual listing fees based on market capitalization.

That's it. If your firm meets the above requirements, you can proceed to the Nigerian Stock Exchange Headquarters in Abuja to get listed today. Cheers!

I hope you find this piece useful.

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