What the N40billion WAMCO NASD OTC deal signifies

Two leading OTC market Participating Institutions: Stanbic IBTC Stockbrokers Limited and BGL Securities Limited swapped 127,184,030 units of FrieslandCampina WAMCO Nigeria Plc equity.

Implications of this are numerous and significant.

• This is the largest trade by volume ever done on the OTC market – up 17 percent on the previous largest transaction (108million units of IGI in January 2015).
• By value (₦40 billion) this is certainly the biggest trade on the NASD OTC market in its 24 month history.
• By block, this represents almost 80 percent of dematerialised shares in WAMCO.
• In pricing, the deal was done at the prevailing market price of ₦315.67 per share indicating that the OTC market price was acceptable to by both buying and selling investor.

Settlement was completed on June 12, 2015 (in line with the market’s T+3 settlement period).

PAT MELIK