New listing expected to boost Nigerian Stock Exchange - CNBC Africa

New listing expected to boost Nigerian Stock Exchange

Western Africa

by Dara Rhodes 0

Computer Warehouse is the first company to list on the Nigeria Stock Exchange listing in 2013. PHOTO: Getty images

Computer Warehouse Group is the highest capitalised security company in the ICT sector of the stock exchange and while it has listed 2.5 billion ordinary shares at 5.48 thousand per share, some analysts show concern in the pricing.

The new listing on the stock exchange is expected to boost the market capitalisation of the NSE by about 14 billion naira.

“The information about the company as one of the largest ICT companies in Pan Africa, and the information regarding what we are doing, is more important than just the historical financials,” Austin Okere, Group managing director at Computer Warehouse Group told CNBC Africa.

The Computer Warehouse Group that was founded in February 2005, plans on changing from an infrastructure company to a service driven corporation and in addition, they will also be going into virtual products.

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“To give you two examples, we are the IP behind the Diamond Yellow account that was announced by MTN and Diamond Bank that is going to bring inclusive banking to 55 million subscribers,” said Okere.

“We also have what we call the micro finance banking application in the cloud which allows micro finance banks to log in and use pay as you go.”

The company recently launched the Enterprise Resource Planning for small and medium enterprises. This a multi-billion dollar industry that produces components that support a variety of business functions.

“In terms of the historical and the forecast in the financials they are all in what we call the prospectus which has been made available,” he explained.

Okere believes that the perception that there is not enough information about the company is because ICT is evolving, it’s new and there are a few of such companies on the exchange, so comparisons cannot be made beyond what the companies have already listed.

“If you take for instance ATMs, we have 30 per cent of the market of roughly 10,000 ATMs and about 3,500 of them objected that we are going to be having about 50 thousand ATMs in the next decade,” he concluded.  

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