The capitalisation of the equities market hit a one-month peak of N12.910 trillion yesterday as Seplat Petroleum Development Company Plc price rallied for the second day on high demand by investors.
The oil and exploration company, listed at N576 per share the previous day, had appreciated by N28.80 to close at N604.80 on the first day of trading. This followed attempts by investors to entice existing holders to part with their shares.
On the second day of trading in shares, investors raised the prize they are willing to pay for the stock higher by N30.24, causing Seplat to close at N635.04. Despite the hike in the price, only 425,265 units of the shares were traded for N270 million in 70 deals.
However, the N30.24 or five per cent gain by Seplat added N16.42 billion to N64 billion gain in market capitalisation recorded yesterday. In percentage terms, Seplat contributed 25 per cent to the gain recorded in the market, which assisted to lift the capitalisation to N12.91 trillion, the highest since March 12, 2014. The Nigerian Stock Exchange (NSE) All-Share Index closed 0.59 per cent higher at 39,203.29.
Market analysts had said the addition of Seplat to the NSE would boost its market capitalisation going forward, adding it is a good sign positive developments expected in the market in terms of new listing.
An excited Chief Executive Officer of the NSE, Mr. Oscar Onyema, had the listing of Seplat represented a celebration of many milestones.
“Seplat becomes the first Nigerian company listed on the main market of the London Stock Exchange (LSE) and the first pure play upstream listing on the NSE. This is also the first Initial Public Offering (IPO) since the market crash of 2008,” Onyema had said.
The Chairman of Seplat Dr. ABC Orjiako, said “We are delighted with the support shown and happy to welcome a range of blue chip investors to our share register. Despite a challenging market for oil and gas stocks, the response has been excellent and demonstrates strong demand in both London and at home for a leading Nigerian indigenous E&P player.”