Against the backdrop of Nigeria’s economic recession that constricted investors’ disposable income, leading blue chip companies have now settled for right issuance as means of solving their funding.
This was as recent statistics from the Nigerian Stock Exchange (NSE) show that total rights issue launched by nine companies across all sectors rose to N339.23 billion in the first six months of the year. Capital market analysts say there is likely going to be more of such issues in the months ahead as firms seek more stable sources of working capital to pay up dollar-denominated debts owing to risk of a weakened forex market.
This was as recent statistics from the Nigerian Stock Exchange (NSE) show that total rights issue launched by nine companies across all sectors rose to N339.23 billion in the first six months of the year. Capital market analysts say there is likely going to be more of such issues in the months ahead as firms seek more stable sources of working capital to pay up dollar-denominated debts owing to risk of a weakened forex market.