Nigerian Stock Exchange: The Seven Technology Companies Listed
The Nigerian Stock Exchange (NSE) is the third largest stock exchange inAfrica. It has a market capitalization of N 8.5 trillion ($23.63 billion). TheSecurities and Exchange Commission is the regulator of the Nigerian stockmarket. The stock exchange has about 176 companies listed. There are just 7technology companies of the 176 listed companies. Furthermore, there are 11sectors in the stock exchange with technology being one of them. Some of theother sectors include; Agriculture, Conglomerates, Construction & real-estateand Consumer goods. Others are Financial services, Healthcare and Industrialgoods. Natural resources, Oil and gas and Services are also on the list.According to the Collins Dictionary: “a stock exchange is a place where peoplebuy and sell stocks and shares. The stock exchange is also the tradingactivity that goes on there and the trading organization itself.”
Nigerian Stock Exchange: A Quick Overview Of All Technology Stocks
Tech Companies per % of Total Market Cap of Tech StocksThe seven technology companies on the NSE include Chams Plc, CourtvilleBusiness Solutions Plc and E-tranzact. Others are CWG Plc, NCR (Nigeria) Plc,Omatek Ventures Plc and Tripple Gee & Company Plc. We have only taken intoconsideration the companies in the ICT sector. The total market capitalizationfor the tech sector on the NSE is N31.98 billion ($88.9 million). Thetechnology company with the highest market capitalization is E-tranzact Plc.Its market cap is N 19.95 billion ($55.46 million). Furthermore, Tripple G hasthe lowest market capitalization with N 435.56 million ($1.21 million).Two of the companies operate in the financial technology space. Two arehardware companies while two others are software & services companies . Theirofferings include data capture systems, cloud services etc. Tripple G seems tobe the outlier, it provides secure printing, RFIG tags etc. Furthermore, twoof the seven were assigned special status codes MRF and BLS. The NSE assignedthe Below Listing Standard (BLS) to E-tranzact. BLS “comprises alldeficiencies regarding Continuing Listing Standards”. Omatek has the MissedRegulatory Filing (MRF) status. This is because it hasn’t filed its auditedaccounts since 2015. Consequently, the NSE suspended Omatek and some otherfirms in 2017.Let’s take a look at each of these tech companies. Please note that shareprice used here is as at April 11, 2018.
4 — E-tranzact provides payment solutions
E-tranzact is an electronics payments solution provider. It has operations inGhana, Kenya and Zimbabwe. It also has operations in Cote d’Ivoire and theUnited Kingdom. The firm started off in September 2003. Its solutions coversall aspects of payment; ATM, Internet, POS, and Mobile. Its market cap is N19.9 billion ($55.46 million) with share price of N 4.75 ($0.013).The firm has deployed its mobile payment solutions to banks and non bankfinancial institutions. Its solutions cuts across government and educationsectors. It also has solutions for the travel and transportation industry.
5 — NCR Nigeria Plc offers consumer transaction technologies
NCR Nigeria Plc is a subsidiary of NCR Corporation. It has three mainsegments. They include Financial Service Group (FSG), World Customer Services(WCS) and System Media Services (SMS). Additionally, the company providesproducts such as ATM, Retail Point of Sales terminals (Point of Sale) and SelfService Kiosks. It also provides Self-check-in/out systems. It also sellscomputer consumables. The firm’s market cap on the NSE is N 680 million ($1.89million). It has a share price of N 6.3 ($0.018).The FSG and SMS segments handle sales of hardware and other products. Whilethe WCS segment takes care of installation and maintenance.Mrs. Florence Seriki showing Nigerian government officials Omatek’s products
6 — Omatek Ventures Plc assembles computers in Nigeria
Omatek assembles computers and peripheral devices in Nigeria. These peripheraldevices include speakers, keyboards and mouse. The company also has e-learningand solar products. Its Founder was Mrs. Florence Seriki. Mrs Seriki passed onin 2017. The company appointed a new Managing Director later in 2017. Omatekis among the very few made in Nigeria computer brands. Another one is Zinoxwhich recently acquired Konga. Omatek’s market cap is N 1.47 billion ($4.09million) and its share price is N 0.5 ($0.0014). It was suspended from the NSEfor failing to file its audited accounts. The NSE will lift the suspensiononce the firm files outstanding accounts.
7 — Tripple Gee Plc provides secure printing services
Tripple Gee has a 37 year experience in secure printing. It manufacturesfinancial instruments, secure and commercial documents, labels and flexiblepackaging materials. Tripple Gee also provides RFID smart labels. Thecompany’s products includes cheques, election stationery, licenses andpermits. It also prints share certificates and statement of accounts. Itspackaging products include tea bags, pharma labels etc. Its Founder is ChiefGbade Giwa. The firm’s market cap is N 435.56 million ($1.21 million) whileits share price is N 0.88 ($0.0024).The company’s clients includes the Central Bank of Nigeria. First Bank ofNigeria and some other banks are also among its clients. It also has otherclients in the Education, Government and Transport sectors.
More Technology Companies Might List Soon
Reports had it in 2015 that Interswitch was planning an initial publicoffering (IPO). The IPO has not happened. There are unconfirmed reports thatit will happen in 2019. If it does, it would be Africa’s first billion techIPO. Interswitch is a fintech startup similar to E-tranzact.In an exclusive interview with Bounce, Hotels.ng CEO, Mark Essien said theywere considering an IPO too. Mark said it might happen in 2018 or 2019. Bouncereported in 2017 that members of the NSE paid a visit to Hotels.ng. Hotels.ngis one of Nigeria’s biggest online travel companies.It would be great to see more technology companies listed on the NSE. Thiswould mean more capital for the sector. If the companies utilize the fundswisely, it would mean more jobs and economic prosperity.Please note we have tried to provide accurate information as much as possible.Got any feedback? Let us know in the comments. Alternatively, you can contactus here.Cover Image: Wikipedia CommonsLondon Stock Exchange in talks with Indian tech firms for overseas listingLondon Stock Exchange (LSE) is in talks with several Indian technology firmsfor their overseas stock listings, a senior executive for the British exchangetold Reuters, as New Delhi moves closer to allowing companies to directlyaccess foreign markets.India is drawing up rules to allow companies to float overseas without havingto first list shares in India as a way to help start-ups reach highervaluations and access capital more easily. With companies such as Reliance’sdigital unit – which recently raised over $20 billion from investors -considering listing abroad, the relaxed rules present an opportunity for someof the world’s leading stocks exchanges to vie for India’s rapidly growingtech and start-up companies.India has the world’s third-largest start-up ecosystem, which is expected togrow by 12-15 per cent annually, the government says. In 2018, India had about50,000 start-ups, of which around 9,000 were technology-focused, and many haveattracted the likes of global investors SoftBank and Sequoia Capital. LSE is“enthusiastic and optimistic” about the prospect and has held talks withIndian companies in recent months, particularly in the tech sector, said GokulMani, its head of primary markets for India, Middle East and Africa. “It’sseveral (Indian) companies in the technology sector that we’re talking to. Wehave a very strong technology sector representation on LSE,” Mani said.Mani declined to name any specific companies, but LSE said technology is thefourth-largest sector on the exchange, representing around 11 per cent of thetotal market capitalisation of London-listed firms. SEBI had marked out 10possible foreign markets for overseas listings, including the US and Britain,back in 2018, but it took until this year for regulation to move forward.8 Nigerian Tech Companies Listed On The Nigerian Stock Exchange • TechpointAfricaSometime in the last quarter of 2017, a few members of the Nigeria StockExchange (NSE) paid a courtesy visit to the Hotels.ng head office in Lagos.Following the visit, the one question on the mind of many was whetherHotels.ng was preparing for an Initial Public Offering (IPO).Hotels.ng Chief Executive Officer, Mark Essien, later laid the rumours to restby confirming during an interview on Bounce TV that his company expected toget listed by 2018 or, at the latest, before the end of 2019.This is fair enough, as taking a company public is not something thatmaterialises overnight. IPOs are usually a long multifaceted process withcomplex business and legal involvement. And it says a lot that tech companiesare seeing a need to defy all odds to break into the coveted NSE market.While some have failed in their bid to gain entry, a few others have madeprogress and are conveniently listing their securities on the NSE market.
Tripple Gee & Company Plc
Tripple Gee & Company Plc was incorporated in 1980 but converted to a LimitedLiability Company in 1991 when it listed its shares on the NSE.Tripple Gee is a manufacturer of financial instruments, secure and commercialdocuments, labels and flexible packaging materials.In the last five financial years the company has recorded increases in bothturnover and retained profit. Profit before tax hit a high of ₦53 million in2015 and dropped to ₦15 million in 2017.The peak price for a Tripple Gee share in recent times was ₦0.51 compared tothe lowest in the year put at ₦0.38. Tripple Gee’s core market, which is theproduction of cheques, has taken a hit with the advent of online banking.
As of March 2017, 176 companies were listed on the NSE. Their marketcapitalisation is about ₦8.5 trillion combined. It is worthy of note that techcompanies make up only a minute fraction of that number.Following the settlement of MTN’s fine battles with the government, anagreement was reached for the company to be listed on the NSE before the endof year 2018.If everything goes according to plan, the listing of the shares of the largesttelecommunications company in Nigeria on the domestic bourse could be a gamechanger for the equity market. As such, it could prove an enabler for morelocal tech companies looking to list on the Nigerian Stock Exchange.* * *Featured image: S Remeika on Flickr (cc)Ifeanyi is a desk reporter-turned administrator. Outside of work, I love toread and travel.* * *On September 30, ask the Techpoint Africa team anything. Limited slotsavailable so reserve a spot now.4 Nigerian Tech Companies On The NSE Currently Trading Below Their IPO ListingPrice • Techpoint AfricaOnly seven companies playing in the ICT sector are currently listed on theNigerian Stock Exchange (NSE).But in spite of the growing technology ecosystem in Nigeria, the performanceof their shares does not appear encouraging for tech companies that areintending to go public.As of this publication, four of the technology companies on the stock exchangeare trading below their initial public offering (IPO) listing price.* * *Suggested Read: 7 Nigerian tech companies listed on the Nigerian StockExchange* * *
Listed tech companies on the good side
Even though four of the seven NSE-listed ICT companies are not doing great,each of the remaining 3 companies indicated profits for the period ended June30, 2018.While these 3 companies all recorded profits in H1 2018, we were unable toconfirm whether or not their current share price is higher than their listingprice. We reached out to the NSE but didn’t get a response.
Triple Gee and Company Plc
Triple Gee and Company Plc recorded 11 kobo earnings per share for the periodended June 30, 2018. Its shares were at ₦0.77 each, with a 52-week high priceof ₦1.09.Triple G recorded the highest trade volume among other listed tech companiesin recent times, with 1,115,122 on September 4, 2018.
The fate of impending IPOs
Online payment company, Interswitch suspended its proposed IPO in 2016 and isyet to revisit its decision on the suspension.According to a recent claim by the NSE, MTN Nigeria is yet to make anycommitment towards its impending IPO. There’s reason to be sceptical about thetelecom giant’s chances of making a great impact on the stock exchange,considering that over the last 4 years, it has been getting continuallysanctioned by government regulatory agencies.Regardless of the disappointing performance of most ICT companies listed onthe NSE, many remain positive. Following Nigerian fintech startup, Paystack’srecent $8 million Series A round, Tosin Olaseinde, Money Africa founder, askeda question on Twitter about tech startups and potential IPOs.Most respondents indicated their willingness to bet on Paystack, should thestartup ever go public.Based on this, is it safe to say that potential investors don’t consider theICT companies currently listed on the stock exchange as worthy of theirinvestment?Featured image: S Remeika on Flickr (cc)Mobile & African Tech Enthusiast │ Data Analyst │ Music* * *On September 30, ask the Techpoint Africa team anything. Limited slotsavailable so reserve a spot now.