All You Need To Know About Alternative Securities Market (ASeM) of Nigerian Exchange

Nigeria’s Securities and Exchange Commission (SEC) has announced that it is introducing a new market called the ASE Market which will be a specialized board on the Nigerian Exchange where small to mid-sized companies can access the capital market under less stringent rules and requirements to raise long term, low cost capital.

NSE revealed early this year that the new Alternative Securities Market would be aimed at SMEs

Nigerian Stock Exchange is keen on the role of emerging companies in a developing economy. They have taken the step of providing a platform for the growth of these companies.

The ASEEM Board aims to support the growth of SME’s through flexible rules that recognize their growth potential.

The Exchange has a number of designated advisers who can offer professional advice to Asean and Asean listed companies. Asean and Asean listed companies have the opportunity to use the services of these advisers.

A number of companies are licensed to deal in stocks, bonds and derivatives in South Africa. These companies include the following:

The selection process was focused on those with expertise in corporate finance, investment, capital market rules and operations and intimate acquaintance with the disclosure and listing requirements of the exchange.

The Firms were cleared by the Securities and Exchange Commission, SEC, and were screened by the NSE. The Firms had a compliance history, transaction profile and track record presented by the SEPs.

The major problem of indigenous companies in the manufacturing and petroleum industry has been that they have not been able to access capital to finance the acquisition of their facilities.

“The Bank of Uganda is working on a new regulatory framework for the issuance of digital currencies. This is good news for the industry and the public at large.

He says there are small and medium sized businesses that are being run well, and that people would like to invest in, if they have the platform.

“Businesses are being run well. They have customers who are using their products and willing to invest in them. On the other hand, these businesses can also use this opportunity to raise new capital. This is a great opportunity for both sides,” he said.

The Securities and Exchange Commission (SEC) has given the green light to the new Alternative Securities Market. The objective is to give companies the opportunity to trade in their securities in a regulated market.

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How The Nigerian Exchange Approved The New Alternative Securities Market (ASeM)

The third market classification was introduced in 2018 to be a capital market.

Small and medium-sized businesses have a vital role to play in Nigeria’s economy, just like the larger companies. They can also raise capital, just like the larger companies.

Alternative Securities Market is a new market for the emerging businesses.

The market is a specialised board for smaller companies to access the capital market under less stringent rules and requirements.

List of Companies on ASeM of NGX

At the time of this write up, there are three companies currently on the Alternative Securities Market, they are as listed below

1Capital Oil PLC [MRF]Oil And GasCAPOIL
2Juli PLC.ServicesJULI
3Rak Unity Pet. Comp. PLC. [MRF]Oil And GasRAKUNITY
4Smart Products Nigeria PLC [MRF]Construction/Real EstateSMURFIT

What Is ASEM And How Does It Work?

What’s the Purpose of ASem?

1) To help small firms become more viable.

2) Smaller companies can use the listings.

3) To ensure that indigenous companies can access the capital market.

4) To help small businesses to grow and develop.

5) It is a platform for small businesses to raise funds.

Are stocks from ASAM safe?

Yes, because any company listed on the Nigerian Stock Exchange (NSE) must meet the minimum required standard set by the NSE.

You may want to focus on the smaller companies in the small cap market, but there are many other factors to consider. Use the Year-To-Date performance as a factor.

The designated advisers will be able to provide professional support for the companies.

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