Markets
Is a Key investor exiting Ikeja Hotels Plc?
Ikeja Hotels Plc was one of the most actively traded stocks on the NSE last week, an indication a key investor may be entering/exiting the stock.
Ikeja Hotels Plc was one of the most actively traded stocks on the Nigerian Stock Exchange last week. 279,110,328 shares valued at N572 million were traded in 6 deals at an average price of N2.05.
The deal is a significant one, as it represents over 10% of the company’s issued share capital. Ikeja Hotels has a total of 2.08 billion shares outstanding.
Who’s Buying/Selling?
The company is yet to notify the Nigerian Stock Exchange of the transaction as required.
As at the 31st of January, 2017, the following shareholders held 5% or more of the company’s issued share capital.
The company had been in an ownership tussle between two factions of the Ibru Family. One led by Goodie Ibru, who founded the firm, and the other led by Maiden Ibru, whose husband, Alex Ibru, invested in the company.
Goodie stepped down from the board in February last year, citing the need for a new generation of Ibrus to take over the firm. This was despite a court order affirming his position as Chairman. The board was reconstituted and Anthony Idigbe (SAN) was appointed as Chairman.
Goodie is, however, represented by his son, Ufuoma Ibru, while the Maiden Ibru faction is represented by her son Toke Alex-Ibru, and brother, Alex Thomopoulos.
How has the company fared in 2018?
Results for the third quarter ended September 30, 2018 show that revenue increased from N8.5 billion in 2017 to N9.7 billion in 2018. Profit before tax increased from N790 million in 2017 to N1 billion in 2018. Profit after tax also rose from N537 million in 2017 to N664 million in 2018. Earnings per share also jumped from N0.26 in 2017 to N0.36 in 2018.
The company could, however, fall short of the forecast it had set for the year. The company had set a forecast turnover of N13.1 billion, profit before tax of N2 billion, and profit after tax of N1.5 billion.
Shares have outperformed the NSE
Year to date, the company’s shares are up 15.17%, outperforming the All Share Index which is down 16.17%.
About Ikeja Hotels Plc
Ikeja Hotels was incorporated as Property Development Company on November 18, 1972. The company’s name was later changed to Ikeja Hotels Limited in 1980. It was listed on the Nigerian Stock Exchange in 1983 and assumed its present name on February 5, 1991.
The company’s subsidiaries include Hans Gremlins Limited (through which it has an indirect shareholding in Sheraton Hotels Abuja). The company is also a shareholder in Tourist Company of Nigeria Plc (which owns the Federal Palace Hotels and Casino, Lagos).
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SEC plans to monitor foreign stock brokers in Nigeria
SEC is proposing tighter and stricter regulatory oversight and requirements for foreign stockbrokers in the country.
In an attempt to reduce the demand for foreign stocks in Nigeria, the Securities and Exchange Commission (SEC) is proposing tighter and stricter regulatory oversight and requirements for foreign stockbrokers in the country.
In an interview monitored by Nairametrics, the executive commissioner for operations of the SEC, Dayo Obisan revealed the commission was planning to actively monitor the local facilitators of foreign stocks.
“At least 400,000 Nigerians have invested in foreign stocks through brokers in the past 18 months,” Obisan said, with Nigerians actively trading or holding foreign equities now exceeding those investing in the local market and about 70% of these participants being less than 40 years of age.
This is despite the Nigerian Stock Exchange being dubbed the best performing last year after it gained 50% YTD. Stocks are however down 5% YTD.
In contrast, the S&P 500 Index is currently trading 14.50% YTD, creating a new all-time high.
Also, the value of transactions is down YTD as demand shifts from the Nigerian stock exchange market to the Cryptocurrency and foreign stock market.
“There is an increasing interest among the younger population and this is of concern to the commission primarily because it creates an avenue for exploitation,” Obisan said.
The SEC intends to license firms offering foreign stocks under a “digital sub-broker” regulation, which Obisan says should provide a form of clarity to their activities.
He also stated the requirement will ensure “regulatory responsibilities in on-boarding clients, custody of assets, and compliance with reporting requirements are met”.
