Big companies shun public offers, raise N2.7trn from commercial papers –

•Only N1.89bn for Public Offer

•Analysts see danger of capital mismatch

•List interest rate, policy environment, others as determinants

By Peter Egwuatu

There are indications that Nigeria’s leading corporate institutions have abandoned public offer of their shares in the capital market, the traditional medium to long term funding option for such institutions.

Financial Vanguard findings show that the companies are now raising such capital through the Debt Capital Market, DCM, specifically, the Commercial Papers, CPs, which is more of short term.

Consequently, only one company, Skyway Aviation Handling Company (SAHCOL), has raised about N1.89 billion from the Public Offer since 2014 when the CP window emerged the preferred option.

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