The share price of Seplat, Nigeria’s indigenous oil exploration company jumped to a year high on Monday after trading for N688 per share beating its prior-year high of N682 per share.
Seplat first announced a dividend per share of US5 cents following the release of its 2020 FY results where it reported a loss after tax of N30.7 billion. However, the company also announced on 29th April 2021, in conjunction with its Q1 2021 Financial Results, a quarterly dividend of US2.5 cents for Q1 2021.
Following these announcements, key dates were also published for both dividends being as follows:
Summary of Key Dates
|Earlier Date||Revised Date|
|Dividend announcement date||29th April 2021||10th May 2021|
|London Stock Exchange: Ex-Dividend Date
Date for determining foreign exchange rate
|11th May 2021||25th May 2021|
|Nigerian Stock Exchange: Qualification date
London Stock Exchange: Associated Record Date
|12th May 2021||26th May 2021|
|Nigerian Stock Exchange: Register Close Date||13th May 2021||27th May 2021|
|Opening and Closing date for election to the Company’s Registrars of foreign exchange rates*||27th May 2021||2nd June 2021|
|Dividend Payment Date||6th June 2021||10th June 2021|
Since making these announcements, the share price has rallied to a 21% gain this month and 71% year to date, making it one of the best-performing stocks on the exchange. But the main reason for the share price rally could be something else.
Apparently, foreign investors looking to repatriate their funds outside the country rely on stocks with dual listing capabilities to do so. For example, if you own shares of Seplat and want to sell it in exchange for forex, you simply sell it on the London Stock Exchange where Seplat is also listed.
Stock market Analysts who spoke to Nairametrics believe this is the main driver of the rally experienced with Seplat shares in recent weeks. In addition to paying both interim and final dividends, investors in Seplat will earn about 7.5 cents at an exchange rate of N410.24 for those seeking to earn the dividend in naira.
This is not the first time we have seen stocks with dual listing soar. Last year shares of New Gold Leaf also soared after investors took advantage of its dual listing on the Nigerian and South African Stock exchange to repatriate forex out of the country.