Alternative Securities Market…what stakeholders said at the launch

Nigerian Stock Exchange (NSE) Tuesday officially launched the Alternative Securities Market (ASeM) for emerging companies.

The ASeM board aims at attracting small- to mid-medium sized companies with high potential for growth in Nigeria. The launch offer some stakeholders the opportunity for comments, as INVESTOR captured some important views.

Aigboje Aig-Imoukhuede, CEO, Access Bank plc, who is a member of the NSE council, and represented Alike Dangote, president, NSE, said: “What the Stock Exchange is doing is to bring access to fund to investors and SMEs. Three things are key to this: entrepreneurship, growth, and sustainability.” “It is important that we begin to unlock the opportunities in the SMEs to make them work for both Nigeria and Nigerians.”

Oscar Onyema, CEO, NSE, noted that the NSE had in 2000s attempted to create board for private placement called Private Exchange and Alternative (PRIMPEX) Market, but the idea was dropped by the new management in 2011, saying after diagnostics, the NSE intervened by introduction of Designated Advisors (DAs) to assist ASeM companies meet post-listing obligation.

“Benefits of listing on ASeM include among others access to long term capital; platform for facilitating long term sustainability of the company; reduction of financial burden and risk spreading among shareholders; access to investors focused on high growth potential SMEs in emerging markets; and liquidity for shareholders and transparent price discovery mechanism,” Onyema said.

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Ehimeme Ohioma, head, investment supervision, National Pension Commission (PenCom), said “the way the regulations are currently, ordinarily SMEs will fall below the radar of Pension Funds investment because of their track records.

“We would, may be, take a radical position. The private equity segment of the market would need to be developed to focus on the ASeM market. We are open for discussions on how SMEs would be guided to attract Pension Funds. PFAs would invest in private equity funds who could then invest in ASeM companies.”

Augustine Edet, executive director, NEXTZON, said: “One of the problems SMEs have is that they are unstructured. We are partnering with the NSE in providing advice on how SMEs can list on the ASeM.”

Haruna Jalo-Waziri, executive director, business development, NSE: “We are about to set up technical committee that will look at issues around taxation and registration at Corporate Affairs Commission (CAC).”

Emmanuel Obeta, director, communications and liaison department, Federal Inland Revenue Service, said: “Tax is basically legal. What the law says is what we do. Looking at the multiplicity of taxes, there is a committee that is set up to look at the issues. There are laws guiding taxation. Except the law changes, what it says is what we abide by, until there are amendments to what the law says.”