Nigerian Exchange Group Plc · NSENG:NGXGROUP
Nigerian Exchange — Launching of the Alternative Securities Market for Emerging Business (April 2013)
32 slides from Nigerian Exchange's conference presentation, Apr 23, 2013
Slide 1: The Alternative Securities Market of the Nigerian Stock Exchange
Click to edit Master title style THE ALTERNATIVE SECURITIES MARKET OF THE NIGERIAN STOCK EXCHANGE Presented by Oscar Onyema CEO, The Nigerian Stock Exchange AT THE LAUNCHING OF THE ALTERNATIVE SECURITIES MARKET FOR EMERGING BUSINESS The Muson Centre, Onikan Lagos 23rd April, 2013
Slide 2: Outline
| Click to edit Master title style Outline • Definition of ASeM 1 • Overview of SME Classification 2 • Previous Support to SMEs 3 • Key ASeM Initiatives 4 • ASeM Today 5 • Listing on ASeM 6 • Overview of The Nigerian Stock Exchange 7
Slide 3: Objective
| Click to edit Master title style Objective To present the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange as the veritable platform for emerging businesses to access the capital market
Slide 4: Definition of ASeM
Click to edit Master title style Definition of ASeM
Slide 5: Definition of ASeM
| Click to edit of Definition Master ASeMtitle style A specialised board to accommodate small and mid-sized companies with high growth potential seeking to access the capital market Seeks to address major challenges of emerging businesses in Nigeria, e.g.: • Difficulty in accessing long term capital
Slide 6: Overview of SME Classification
Click to edit Master title style Overview of SME Classification
Slide 7: Target Market - Classification of SMEs
| The ClickTarget to editMarket Master- title Classification style of SMEs SME definitions generally based on number of employees and turnover/ value of assets ASIA EGYPT GHANA BRAZIL RUSSIA INDIA CHINA S/AFRICA No of Employees Small 5 to 50 5 to 14 6 to 29 20 to 99 15 to 100 0 <300 50 to 99 300 to
Slide 8: Target Market - Classification of SMEs
| The ClickTarget to editMarket Master- title Classification style of SMEs Nigeria: Based on number of employees and assets value Category Number of Assets (NGN’ Million) US Dollar Equivalent Employees (excluding land and buildings) (N159=1 UD$) 1 Small Enterprises 10 - 49 10 - less than 100 $62,893
Slide 9: Previous Support to SMEs
Click to edit Master title style Previous Support to SMEs
Slide 10: Historical SME Schemes
| SME Click Historical to edit Master Schemes title style Money Market Capital Market • 1950s: Nigerian Industrial • 1970s: Indigenization Decree Development Bank (1972) & Nigeria Enterprises • 1980s: Incentives to maximize Promotion Act (1977) exploitation of natural • 1980s: Second Tier Securities
Slide 11: Diagnostics of Previous SME Boards and Intervention
| Diagnostics Click to edit of Master Previous titleSME styleBoards Diagnostics Intervention • Culture of non-compliance • Introduction of Designated Advisers to assist ASeM • Unclear purpose and inferior companies meet post-listing perception obligations • Restriction on the amount of • Clearly def
Slide 12: Key ASeM Initiatives
Click to edit Master title style Key ASeM Initiatives
Slide 13: Some Key ASeM Initiatives - Completed
| Some Click toKey edit ASeM Master Initiatives title style - Completed • Developed brand essence towards launching of the board with identity, purpose and target company criteria • Reviewed listing requirements, making listing on ASeM readily accessible and affordable to a wide range of viable emer
Slide 14: Some Key ASeM Initiatives - Ongoing
| Some Click toKey edit ASeM Master Initiatives title style - Ongoing • Developed Consequence Management Process for rule violation • Reviewing and currently enhancing market structure and trading mechanics for ASeM companies towards driving liquidity • Introducing ASeM Index to track performance of
Slide 15: ASeM Today
Click to edit Master title style ASeM Today
Slide 16: The Alternative Securities Market (ASeM)
| The ClickAlternative to edit Master Securities title style Market (ASeM) • 11 Companies currently listed, spanning multiple sectors • Equity market capitalization of N4.10bn as at 19/04/13 Consumer Construction/ Healthcare Goods Real Estate 0% 6% Industrial Goods 1% Services 5% 14% Natural Resourc
Slide 17: Growth Measure of ASeM Companies
| Growth Click to edit Measure Master of title ASeM style Companies % Performance of ASeM Index 1.71% 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -1.62% -2.00 2012 (Full Year) 2013 (YTD) Figures as at Thursday April 18, 2013 22-Apr-13 The Nigerian Stock Exchange 17
Slide 18: Introducing the NSE ASeM Index
| Introducing Click to edit the Master NSE title ASeM style Index • Market capitalization weighted index of Current Members of the Index: all companies listed on ASeM • 11 companies currently listed on the 1. Adswitch Plc board 2. Afrik Pharmaceuticals Plc • Calculated on a daily basis • Full Year R
Slide 19: ASeM Pillars
| ASeM Click to– edit Pillars Master title style ASeM Designated Advisers (DAs) Growth Ambassadors (GAs) Institutional Services The DA Programme was The ASeM GA Programme Institutional Services is a introduced for securities was introduced to project the value add of The NSE aimed professionals to h
Slide 20: Listing on ASeM
Click to edit Master title style Listing on ASeM
Slide 21: ASeM - Benefits of Listing
| ASeM Click to– edit Benefits Master of Listing title style Platform for Reduction of financial Access to long term burden and risk facilitating long term capital for growth spreading amongst sustainability of the and expansion shareholders company Professional guidance Membership of a global Acces
Slide 22: ASeM Listing Requirements
| ASeM Click to– edit Listing Master Requirements title style Subject ASeM Previous ASeM New Pre Tax Profits NA Medium term (at least 2 years) comprehensive business plan Market Cap NA NA Operating Record The company must submit financial 2 years statements/business records for the 3 years prior Fin
Slide 23: ASeM Routes to Listing
| ASeM Click to– edit Routes Master to Listing title style Initial Public By Way Of Offering (IPO) Introduction A company offers shares to the public A company’s for the first time. shares are Money paid by "introduced" to the investors for the market with a pre- newly issued shares agreed insider s
Slide 24: First Steps Toward Listing on ASeM
| First Click Steps to editToward MasterListing title style on ASeM Hold a board meeting and pass a Board Resolution Initiate the conversion to list. Call an EGM/AGM Initial Public Offer? of Accounts to to obtain shareholders Determine amount of International Financial approval through a capital to
Slide 25: Overview of The Nigerian Stock Exchange
Click to edit Master title style Overview of The Nigerian Stock Exchange
Slide 26: About The Nigerian Stock Exchange
| About Click toThe editNigerian Master title Stockstyle Exchange 2nd Largest Exchange in Africa by Market Cap Approx. 5 million investors: Foreign (40.3% of market activity); Local investors (59.7% of market activity) 238 Active dealing member firms; 48 Dealing members/Issuing Houses 20 Ordinary me
Slide 27: The NSE Vision
| The ClickNSE to edit Vision Master title style 4/22/2013 27
Slide 28: NSE Pillars
| NSE ClickPillars to edit Master title style Targeted “21st” Growth- First-Rate $1t Strong Market Business Century Enabling Investor Regulatory Development Technology Market Protection Cap Environment Efforts Strategies Structure Programs Target 4/22/2013 28
Slide 29: Market Snapshot
| Market Click to edit Snapshot Master title style NSE All Share Index 17.50% 32,993.97 (YTD) Two key indices Fixed Income All Share Index Market cap: (NSE ASI) N5.89tn NSE 30 Index (NGSE30:IND) Equity Market Capitalization 17.56% (YTD) N10.55tn Equity Products 193 listed companies Market cap N10.55
Slide 30: Key NSE Initiatives 2013
| Click to editInitiatives Key 2013 Master title style PILLARSNSE FOR GROWTH PILLARS KEY INITIATIVES SHORT-TERM (2013) 1. Targeted Business Development Efforts • ASeM Launch 1. Targeted Business Development Efforts • ASeM Re-Launch •• Derivatives Feasibility Study Derivatives Feasibility Study •• Pr
Slide 31: How we can help
| How Click we to edit canMaster help title style The Nigerian Stock Exchange has a dedicated Business Development Division, focused on Listings Sales; Retention (Relationship Management); and Product Management/Development. The team is available to guide companies through the entire listing process
Slide 32: Thank You
Click to edit Master title style Thank You Stock Exchange House 2 - 4 Customs Street P.O. Box 2457, Marina Lagos Island, Lagos, Nigeria listingsales@nse.com.ng www.nse.com.ng