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.
On the other hand, more than 20 companies cutting across several sectors of the economy, have raised a total of N2.7trillion from the CP option within the same period.
The companies are MTN Communications Plc, Dangote Flour Mills Plc, Flour Mills of Nigeria Plc, Coleman Technical Industries Limited, FSDH Funding SPV Plc, International Breweries Plc, Union Bank of Nigeria Plc, FBNQuest Merchant Bank, Sterling Bank Plc, among others.