Tony Elumelu, Chairman of United Bank for Africa Plc says Monday’s migration to the premium board of the Nigerian Stock Exchange (NSE) is a deserved recognition of the group’s adherence to stringent corporate governance.
The bank, which was listed on the NSE in 1970, was migrated to the elite group along with Access Bank, Lafarge Africa and Seplat Petroleum Development Company, having met other stringent criteria such as size (market capitalization) and liquidity.
While congratulating the management and staff of the group on the recognition, Elumelu applauded the NSE leadership for the premium board he considers “to be a progressive classification, as it should provide relevant visibility for prime stocks listed on the NSE and perhaps help discerning investors in their stock selection and broader investment decision process.
“I expect stocks listed on the Premium Board to attract the justified premium valuation, which they truly deserve, as large-cap companies with proven record of sound corporate governance and stock liquidity,” he added, expressing hope that board “further deepen the market and create the much-needed products and liquidity for the Nigerian equity market.”
Agreeing with Elumelu, UBA’s Group Managing Director and chief executive, Kennedy Uzoka said it is well deserved, just as it brings “back memories of our pioneer Initial Public Offering (IPO) in the Nigerian banking sector, following our listing on the NSE in 1970.
“Since then, we have remained committed to the development of the NSE and the broader capital market, through our equity and debt listings as well as strategic partnerships with the leaderships of the Nigerian capital market.”
Furthermore, he expressed hope that the “premium listing will further enhance the visibility of our stock on the Nigerian bourse, we believe our decision to migrate UBA shares to this new Board will deepen value creation for our shareholders. It is pertinent to reiterate our commitment to sustainable and superior wealth creation for all shareholders, as we duly appreciate and place significant premium on everyone’s investment in UBA Group.”
Speaking at the occasion, Oscar Onyema, the NSE’s CEO, the platform is for showcasing sector leaders, with sound corporate governance.
He explained that the “Premium Board features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity.”
According to Onyema, UBA Plc, Lafarge Africa, Seplat and Access Bank have all passed the Corporate Governance Rating System and have market capitalization of N374.48bn, N391.37bn N378.60bn and N347.12bn respectively.
Onyema added, “companies on the Board are well-run corporates with sound governance, which is part of the requisite qualification for listing on the Premium Board. These stocks which currently have strong visibility on the Exchange will further appeal to investors, seeking to invest in companies with the highest standards of corporate governance. From inception to date, the Premium Board Index continues to outperform the benchmark NSE ASI with the Premium Board recording a total return of 85%, compared to the NSE ASI’s return of 42% over the same period.”
UBA, Seplat, Lafarge and Access would join Dangote Cement Plc, FBN Holdings Plc, and Zenith International Bank Plc on the Premium Board, bringing the total number of companies on this elite platform to seven.
Caption: Chairman, United Bank for Africa, Mr. Tony Elumelu; CEO, Nigerian Stock Exchange, Mr. Oscar Onyeama and Group Managing Director/CEO, United Bank for Africa, Mr. Kennedy Uzoka, during the official ceremony to announce the migration of United Bank for Africa Plc and three other companies to the Premium Board of the Nigerian Stock Exchange on Monday.
