United Capital Plc has listed three series Commercial Papers (CPs) worth about N19.72 billion on the FMDQ Securities Exchange, paving the way for investors in the short-term securities to trade on their holdings.
United Capital at the weekend listed its N1.56 billion Series 5, N13.99 billion Series 6 and N4.17 billion Series 7 CPs on the FMDQ Exchange, signalling the completion of the recent raising of N19.72 billion short-term capital by the investment banking group.
The CPs were issued under the company’s N50 billion commercial paper issuance programme.
The net proceeds of the new issuances would enable the company to provide a wider range of wholesale financing solutions to its clients as well as complement its funding base and support the growth of the overall business.
United Capital is a leading financial services group focused on leveraging technology to empower businesses, individuals and governments with excellent financial services.
Meanwhile, the Nigerian Exchange Limited has upgraded United Capital from a low-priced stock to a medium-priced stock following recent appreciation in the share price of the company.
According to the NGX, a review of United Capital’s stock price and trade activities over the most recent six-month period provided the basis for reclassifying the company from the low-priced stock group to the medium-priced stock group.
The reclassification also necessitated the attendant change in the tick size change from one kobo to five kobo – in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015-Trading License Holders’ Rules.
The report showed that United Capital’s share price appreciated above the N5 price level on March 19, 2021 and traded above N5 up till close of business on July 30, 2021.
This indicated that United Capital’s share price had traded above N5 in at least four months out of the last six months.
With this, the company was reclassified from the low-priced stock group to the medium-priced stock group with effect from August 24, 2021.
The NGX classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price.
A company must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.
The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.
The medium-priced stocks consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.
The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.