COVID-19 Update in Nigeria
US Capitol complex temporarily shut down
Champion Breweries gains 32.35% in a week, following Heineken’s indirect acquisition of its shares
Kinyungu Ventures Research calls for changes to cut-and-paste VC strategy in Africa
Flour Mills shares lose N7.4 billion on NSE, as investors book profit
COVID-19 Update in Nigeria
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4 cryptos gain over 400% in a month, far outperforming Bitcoin
Naira remains stable across forex markets as external reserve continues to rise
Oil prices tumble on fears of global economic recovery
Stock Market
Mutual Benefits Assurance Plc to raise N4.8 billion through private placement
Mutual Benefits Assurance Plc. has secured permission to raise the sum of N4.8 billion through private placement.
The Board of Directors of Mutual Benefits Assurance Plc. has secured permission to raise the sum of N4.8 billion through private placement.
This is according to a disclosure signed by the company’s Secretary, Jide Ibitayo and seen by Nairametrics.
The disclosure is part of the resolutions reached at the Extra-Ordinary General Meeting of the firm and sent to the Nigerian Stock Exchange, dated December 3, 2020.
According to the information contained in the notification, the private placement worth N4.8 billion is to be raised through the sale of 8,888,888,889 ordinary shares of 50 kobo each of the company, at the rate of 54 kobo per share, in a distribution succinctly captured below:
- 5,331,004,445 units (approximately 60% of the total allotted units) is to be sold to Charles Enterprises LLC for about N2.88 billion.
- The remaining 3,557,844,444 (approximately 40% of the total allotted units) is to be sold to Arubiewe Farms Ltd for about N1.92 billion.
What this means
- According to Investopedia, a private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.
- In this light, it is pertinent to note that private sales are now common for start-ups, as they allow the company to obtain the money they need to grow while delaying or foregoing an IPO.
What you should know
Other key resolutions reached at the Extra-Ordinary General Meeting include:
- Raising the company’s authorized share capital from N10 billion to N10.05 billion.
- To raise additional capital via the issue of debt or equity or a combination of both including convertible bonds, loans, stock, bonds with options etc.
- Amendment of clause 6 of the Memorandum and clause 5 of the Articles of Association of the company respectively.
Stock Market
Champion Breweries gains 32.35% in a week, following Heineken’s indirect acquisition of its shares
The share price of Champion Breweries’ stocks since the resumption of the market last week increased by 32.35%.
Champion Breweries stocks have gained 32.35% since the open of trade last week Monday, as investors scamper for the shares of the company at the back of expected takeover by Heineken Brouwerijen B.V.
The share price of the company’s stocks on the NSE, from 11-18 January 2021, increased by 32.35%.
Read Also: U.S leading stocks suffer biggest daily plunge since October 28, 2020
This move is attributable to the recent rush for the shares of the company by investors, following a recent purchase of the shares of the mid-cap company by Heineken’s Special entity.
What you should know
- Nairametrics reported that Raysun Nigeria Limited, a Special Purpose Entity (SPE) wholly-owned by Heineken Brouwerijen B.V., acquired 1,903,609,538 additional shares of the brewery company, worth N4.95 billion on 7 January 2021, at a price of N2.60 per share.
- The acquisition took Heineken’s total stake in Champion Breweries to 6,633,043,538 or 84.72% (indirectly).
Read Also: MTN, SEPLAT, ARDOVA, rally Nigerian stocks up
- According to data from the NSE, Champion Breweries shares cleared at N1.35 per share today on the floor of the exchange with 29,291 units worth N43,350.68 crossing hands in 4 deals.
- At the current price of N1.35, the shares of the company have gained more than 56.98% since the open of trade this year, 4 January 2021. This is 95.65% higher than the shares’ 52 weeks low price of N0.69 per share.
- The current share price of Champions Breweries is the highest in 52 weeks at N1.35 per share.
Stock Market
Flour Mills shares lose N7.4 billion on NSE, as investors book profit
Flour Mills shares lost N7.4 billion in today’s session, amid sell-offs occasioned by profit-taking activities by investors.
Spotlight Stories
First Bank, Dangote stocks drop, investors lose N39.54 billion
The market breadth closed positive as CADBURY led 35 Gainers as against 21 Losers topped by FLOURMILL at the end of today’s session.
Nigerian Stocks ended the first trading session of the week on a bearish note. The All Share Index plunged by 0.23% to close at 41,082.38 index points as against the 0.52% gain recorded on Friday.
- Its Year-to-Date (YTD) returns currently stands at +2.02%. Nigerian Stock Exchange market value stood at N21,49 billion.
- Investors lost N39.54 billion
- Nigerian bourse trading turnover on Monday however printed positive, as volume gained by 10.79% as against -17.64% downtick recorded at the last trading session.
- JAPAULOIL, UNIVINSURE, and TRANSCORP were the most active to boost market turnover.
- The market breadth closed positive as CADBURY led 35 Gainers as against 21 Losers topped by FLOURMILL at the end of today’s session – an unimproved performance when compared with the previous outlook.
Top gainers
- CADBURY up 10.00% to close at N10.45
- BOCGAS up 9.98% to close at N13.77
- LIVESTOCK up 9.95% to close at N2.32
- GUARANTY up 1.82% to close at N33.65
- WAPCO up 0.84% to close at N24
Top losers
- FLOURMILL down 5.49% to close at N31
- FBNH down 3.95% to close at N7.3
- GUINNESS down2.63% to close atN18.5
- NASCON down 1.71% to close at N17.25
- DANGCEM down 1.01% to close at N234.6
Outlook
Nigerian Stocks ended the first trading session of the week on a negative note amid falling oil prices.
- Buying pressure from blue-chip stocks, particularly GTBank, WAPCO could not help the Stock bulls in maintaining their run on the account of profit-taking notice in Dangote, First Bank, and Flour mills.
- Nairametrics expects you to seek the advice of a certified stockbroker or financial advisor in choosing stocks to buy, as some Nigerian stocks exhibit cyclic return.
