Rights issues on the Nigerian Stock Exchange

The Nigerian Stock Exchange witnessed a remarkable surge in rights issue activities in the past year, with companies raising a staggering $350 billion through rights issues in 2017. This substantial amount reflects a significant uptick in investor confidence, particularly in the latter half of the year. As the CEO of AUX Capital Partners, Chinedu Anozia expressed his surprise and delight at these figures, emphasizing the positive implications for the market. Looking ahead to 2018, Anozia is optimistic about the prospects for continued growth and expects established companies to capitalize on this momentum by initiating new rights issues and public offers. Furthermore, the upcoming pre-election year is anticipated to stimulate economic activities, prompting increased demand for goods and services. As a result, companies are advised to factor this into their financial projections for the year. Anozia anticipates a flurry of corporate actions in the first half of 2018, with companies gearing up to tap into the current market optimism. With the market capitalization hovering around 14 trillion and the index inching towards 40,000 points, the overall sentiment is positive. However, concerns about potential overvaluation loom, as stock prices continue to soar. Anozia reassures investors by emphasizing the importance of considering companies' financial performance in valuing stocks. He acknowledges that while some companies may face challenges in 2018, many are strategizing to raise capital to address debt burdens and reduce finance costs. Overall, the outlook for the Nigerian Stock Exchange in 2018 appears promising, with expectations of continued growth and capital raising activities to support companies' operational needs and boost market performance.