- VFD Group Plc lists on NGX, commemorates with Closing Gong ceremony
BY FESTUS OKOROMADU
The local bourse, Nigerian Exchange Limited, closed last week on a positive note as the All-Share Index advanced by 0.11 percent week-on-week to 66,454.57 points.
Market analysts attributed the gains to investors’ continued taking of position in fundamentally sound stocks spurred by the third quarter earnings season expectations while all eyes stay gaze on the Central Bank of Nigeria for the next monetary policy committee meeting.
In tandem with the ASI, the total market capitalization of listed equities experienced advancement by 0.11 percent week-on-week to N36.51 trillion as the year-to-date return of the All-Share Index remained at 29.67 percent.
Analysis of sectoral performance indicates a mix-bargain as the see-saw movement continues across tickers.
The Insurance and Industrial goods sectors were the lagging indices as they posted losses by 3.11 percent and 1.38 percent week on week.
On the flip side, the banking and the consumer goods sector garnered gains by 1.43 percent and 0.17 percent respectively while the Oil & Gas index closed flat despite a sell-off in OANDO.
Trading activity throughout the week remained characterized by positive sentiments, as evidenced by the weekly tally of deals which inched by 0.32 percent week-on-weeks to 27,964 deals.
Moreover, the average traded volume witnessed a weekly uptrend by 80.02 percent, settling at 2.41 billion units while the weekly average value rose positively by 23.44 percent week on week, reaching a value of N22.12 billion.
At the close of the week, IKEJAHOTEL, ETERNA and JBERGER were the major toast of investors amid the bargain hunting activities as their share prices advanced by 26 percent, 15 percent, and 6 percent respectively while the laggards for the week were OANDO, UNITYBNK, and MTN whose prices nosedived by 24 percent, 10 percent and 7 percent week on week.
Meanwhile, analysts say they anticipate cautious trading in the market this week due to the absence of significant positive catalysts to boost sentiment.
Others argue that market sentiment is expected to remain mixed as investors engage in bargain hunting and adjust their portfolios in anticipation of Q3 corporate earnings reports, insisting that the ongoing sector rotation is also a focal point, with all eyes on the upcoming monetary policy meeting convened by the Central Bank of Nigeria.
Meanwhile, investors are advised to take advantage of the market by taking positions in stocks with sound fundamentals.
Meanwhile, VFD Group Plc, a sector-agnostic proprietary investment company was admitted into the Main Board of Nigerian Exchange Limited on Friday having met all the listing requirements.
The NGX in its weekly report said, “Trading License Holders are hereby notified that the entire issued and fully paid 190,027,365 ordinary shares of VFD Group Plc (VFD or the Company) were listed on the Main Board of Nigerian Exchange Limited (NGX) on Friday, 6 October 2023.”
The official listing was celebrated with a Closing Gong ceremony and a Fact Behind the Listing Presentation, marking a key milestone in the company’s history.
The listing of VFD Group’s shares has added over N45 billion to the market capitalization of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
VFD Group is a proprietary investment company that builds positive and socially conscious ecosystems by aggregating potentially viable businesses to create innovative products and solutions accessible to the everyday Nigerian citizen and entrepreneur.
Market analysts say the listing on NGX is a strategic move to increase VFD Group’s visibility, enhance its access to capital, and improve its liquidity, ultimately benefiting its valued investors and stakeholders.
The Chairman of VFD Group, Olatunde Busari, SAN, stated proudly, “We are excited to join the distinguished ranks of companies listed on the Exchange, and we are confident that this step will provide us with the resources we need to continue our growth trajectory and serve our shareholders even better.”
The Group Managing Director/CEO of VFD Group Plc, Nonso Okpala, also expressed his excitement about the listing, saying, “This is a momentous occasion for VFD Group. Our journey from a boutique investment firm to a publicly traded company on the Nigerian Exchange reflects our entire team’s dedication and hard work. We are excited about this new chapter and its opportunities to strengthen our market position further.
“We will continue to work towards our strategic goal of creating Africa’s first diverse business ecosystem. Compared to where we started, what we set out to achieve, and economic realities, the Group’s performance has been outstanding on all fronts.”
Our focus on business expansion has yielded results, particularly in sectors other than financial services, and we have significantly increased our balance sheet,” he noted.
The Chairman, Nigerian Exchange Group Plc, Umaru Kwairanga, stated, “We must recognize the unwavering commitment of the Board and Management of VFD Group in making this listing a reality, as well as the pivotal roles played by all the professional parties involved in the transaction. Securing a listing on the NGX Main Board entails a steadfast commitment to elevated disclosure and corporate governance standards. This significant listing heralds a fresh chapter for VFD Group Plc to leverage NGX’s value-added services and capital market products to fulfill its strategic objectives.”
The CEO of NGX, Temi Popoola, stated, “We warmly welcome VFD Group as it joins our prestigious market. The decision to list on NGX promises to augment VFD Group’s liquidity and strategically positions it to attract investments from the global arena. Additionally, this move is poised to elevate the organization’s market value while advancing transparency and corporate accountability.
“Our marketplace is a highly reputable platform for raising capital and facilitating sustainable growth for national development. As the preferred listing platform in the region, we are dedicated to collaborating with companies at different growth stages to explore diverse capital market opportunities that align with their business goals.”
Last month, the Group voluntarily delisted its 190m shares previously traded on the NASD Securities Exchange to be quoted on NGX.
