Over the past decade, the Nigerian Exchange (NGX) has seen significant activity, with 18 new companies joining its ranks since 2014. Among these are recent entrants such as Aradel Holdings, Haldane McCall, and Transcorp Power, which debuted in 2024.
This period has also been one of substantial growth for the market. The NGX All-Share Index, a barometer of the exchange’s performance, has surged by 137 percent, climbing from 41,329.19 at the start of 2014 to 97,992.95 as of November 21, 2024.
This growth has been fueled by the sterling performance of several equities and the contribution of new listings. However, the fate of these listed companies has been far from uniform, with some delivering remarkable gains while others have struggled under the weight of Nigeria’s volatile economic landscape.
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Since 2014, the Nigerian Exchange (NGX) has welcomed several notable listings, including Caverton Offshore Support Group (2014), Transcorp Hotels (2015), The Initiates Plc (2016), Notore Chemical Industries (2018), MTN Nigeria (2019), Skyway Aviation Holding Company (2019), and Airtel Africa (2019).
The NGX also welcomed BUA Cement (2020), Nigerian Exchange Group (2021), Ronchess Global Resources (2021), Geregu Power (2022), BUA Foods (2022), VFD Group (2023), Mecure Industries (2023), and the Nigeria Infrastructure Debt Fund (2023).
Caverton Offshore Support Group, which provides marine and helicopter services, was one of the early listings in this period, debuting in May 2014. However, its fortunes have dwindled significantly. Since its listing, the company’s share price has dropped by a staggering 77%, falling from N8.16 to N1.91 as of November 2024.
Caverton’s financial performance has also been worrying, posting consecutive losses since 2021. In FY 2023, the company recorded a net loss of N12.7 billion, a sharp reversal from the N979 million profit it reported in 2014. The situation worsened in 9M 2024, with losses ballooning to N41.6 billion and negative equity reaching N50 billion.
In sharp contrast, Transcorp Hotels has emerged as one of the NGX’s success stories. Since its listing in February 2015, the company has achieved remarkable growth. Its share price has soared by 915%, climbing from N10.44 at listing to N109, making it one of the most capitalized stocks on the NGX with a valuation of N1.09 trillion.
The company’s profitability has also shown a consistent upward trajectory. In 9M 2015, Transcorp Hotels posted a net profit of N2.3 billion. By 9M 2024, this figure had grown by 336% to N10.2 billion, driven by a strong recovery in the hospitality sector following the pandemic.
The Initiates Plc, a waste management company, has shown steady growth since its 2016 listing. Its share price has risen 171%, from N0.85 to N2.30, while its profits have grown by 152%, increasing from N138 million in 2016 to N348 million in FY 2023.
Conversely, Notore Chemical Industries has struggled since listing in 2018. Its share price has stagnated at N62.5 for over six years, while its losses have deepened. In 2018, the fertilizer company posted a net loss of N2 billion, which ballooned to an alarming N114.3 billion by the end of 2023.
MTN Nigeria, the country’s leading telecom company, shows how tough 2023 was for businesses. After over a decade of consistent profits, the company recorded a net loss of N137 billion in 2023. Things worsened in the first nine months of 2024, with losses rising to N513.9 billion and its equity dropping to a negative N573.6 billion.
MTN Nigeria’s recent losses have overshadowed its achievements since it was listed on the Nigerian Exchange (NGX) in May 2019. The company started with a share price of N99, which has since grown by 74% to N172 as of November 21. However, this doesn’t tell the full story, as the stock reached an all-time high of N295 in January 2024 before its decline.
Airtel Africa alongside MTN Nigeria listed on the NGX in July 2019 at a share price of N399.3. This share price has grown by 440 percent to N2156.9 as of November 21. Since listing on the NGX and the London Stock Exchange in 2019, Airtel Africa can be viewed as a success story.
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In the year ended March 31, 2019, the company recorded a $2 million net profit. However, in the half-year ending September 30, the group posted a $79 million net profit signifying a significant change of fortunes.
Skyway Aviation Handling Company (SAHCO) completes the triad of companies that were listed newly on the NGX in 2019. Since listing at a share price of N4.65 in May 2019, the stock has appreciated by 459 percent to hit N26, its current share price.
SAHCO has demonstrated remarkable profitability over the years. The company posted a net profit of N447 million in FY 2019, which surged by 338% to N1.96 billion by FY 2023. This upward trend continued in the first nine months of 2024, with SAHCO recording a net profit of N7.08 billion as of 9M 2024.
BUA Cement was the only company to list on the NGX in 2020. The company, which listed in January 2020 at a share price of N41, has seen its stock surge by 132%, reaching a current price of N95.
Despite the debilitating effect of the Naira’s depreciation on BUA Cement’s financials in 2023, the group posted a net profit of N69.5 billion, which was 4 percent lower than the N72.3 billion profit recorded in 2020.
In 2021, NGX Group debuted on the Nigerian Exchange (NGX) at a share price of N17.75, reflecting a 41% growth to its current price of N25.
Despite trailing the overall market’s performance since its listing, the company achieved notable profit growth, with a 2023 profit of N5.25 billion—a significant 134% rise compared to N2.25 billion in 2021. The group is already on track to outperform its 2023 financials, with a 9M 2024 net profit of N3.91 billion.
Ronchess Global Resources joined the Nigerian Exchange (NGX) in December 2021 with a share price of N81, which has remained unchanged nearly three years later.
The company, known for its road construction and traffic management solutions, faced a tough year in 2023, recording a net loss of N6.5 billion. However, things took a positive turn in 2024, with the company reporting a net profit of N143 million by the end of the first nine months.
BUA Foods and Geregu Power, the two company which listed on the NGX in 2022 have been success stories. The two companies make up the list of the top ten most capitalized companies in Nigeria.
BUA Foods listed on the NGX in January 2022 with a share price of N44. Since listing, the share price has appreciated by 798 percent to the current share price of N394.9.
At the moment, BUA Foods is the third most capitalized equity in Nigeria with a market capitalization of N7.11 trillion. BUA Foods is also the most profitable consumer goods in Nigeria, with a net profit of N201.4 billion as of 9M 2024.
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Geregu Power illustrates a similar trajectory. The company’s shares were listed on the Nigerian Exchange (NGX) in October 2022 at N120.9 each and have since surged by 851%, reaching the current price of N1,150 per share.
The performance of the 2023 cohort presents a mixed picture, with VFD Group undergoing a share price restructuring following its bonus share issuance.
Since its listing on the Nigerian Exchange (NGX), Mecure Industries has recorded a 198% appreciation in its share price, rising from N3.92 at listing to its current level of N11.7.
Nigeria Infrastructure Debt Fund by Chapel Hill Denham has appreciated by 10 percent since listing on the NGX in October 2023. The fund’s N20.4 billion net profit in 2023 marked a 98 percent growth from the N10.3 billion net profit recorded in 2022.
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