Markets
African Prudential could be worth more than N4.55
Africa Prudential Plc currently has a market capitalization of N4.8 billion.
Africa Prudential Plc is a Nigerian financial services firm which currently has a market capitalisation of N9.1 billion. The company also has a total of 2 billion issued shares, even as it closed yesterday’s trading session at N4.55.
According to information contained in its full-year 2018 financial result, Africa Prudential Plc has unquoted securities valued at N4.8 billion. This represents roughly 50% of its entire market capitalization.
The unquoted equity relates to investments in the following entities: UBA Kenya, UBA Uganda, and UBA Mozambique. The company, however, did not give a breakdown of its interests in each entity.
UBA (the parent company of the bank) in question has an 81% stake in UBA Kenya, 74% stake in UBA Uganda, and an 85% stake in UBA Mozambique. It did not, however, provide a breakdown of shareholding for the subsidiaries.
Going forward
At some point in the future, the company may decide to sell off its stakes in the aforementioned banks, seeing as it may never get the opportunity to acquire controlling shares in them.
UBA Kenya commenced operations in 2009, UBA Uganda opened its doors in 2008 and UBA Mozambique was established in 2010.
Africa Prudential Plc was originally incorporated as UBA Registrars Limited on the 23rd of March 2006. The company subsequently changed its name to Africa Prudential Registrars Plc in August 2011 and was listed on the NSE in January 2013. To expand its business portfolio, the firm acquired UAC Registrars Limited in June 2013.
The company changed its name to Africa Prudential Plc, following a special resolution passed by shareholders to reflect the firm’s expansion beyond registrar services.
Results for the 2018 financial year show gross earnings increased from N3.3 billion in 2017 to N4.4 billion in 2018. Profit before tax increased from N2 billion in 2017 to N2.3 billion in 2018. Profit after tax also rose from N1.7 billion in 2017 to N1.9 billion in 2018.
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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”.
