NMRC’s 1.76bn shares to trade on NASD OTC market

By Omodele Adigun

The entire 1.76billion shares of Nigeria Mortgage Refinance Company (NMRC)have been given approval to trade on the National Association of Securities Dealers’(NASD) Over-the-Counter(OTC) platform just as experts have canvassed increase in the depth of products in the capital market  to boost liquidity.
Announcing the trading on NMRC shares, NASD said the securities were introduced to its OTC market by Cordros Capital Limited penultimate week, which brought the total number of securities on the platform to 24.
The company explained that the shares of the latest entrant would be traded at the last documented price of ₦4:00 per share, which was the last issue price for the shares.
NMRC’s financial statements for 2014 indicate that the company made a total income of ₦732.92million, while its profit after tax stood at ₦160.15million.
The Nigeria Mortgage Refinance Company Plc (NMRC) was incorporated on the 24th of June, 2013 as a public limited liability company registered with the Securities & Exchange Commission (SEC) and regulated by the Central Bank of Nigeria (CBN) as a non-deposit taking financial institution with the core activity of refinancing mortgages.
NMRC was set up to bridge the funding cost of residential mortgages and promote the availability as well as the affordability of good housing to Nigerians by providing increased liquidity in the mortgage market through the mortgage and commercial banks
Meanwhile, experts have advised that, to attract more liquidity, the depth of products in the capital market should be increased to enhance more activity; while the tax implications of such products should also be considered.
This was disclosed by panelists at the 2015 Capital Market Solicitors Association business (CMSA) luncheon last Wednesday in Lagos
The gathering brought together solicitors and representatives from capital market operators while the panel included two directors of NASD PLC; Mr. Jibola Odedina and Mr. Mobolaji Balogun.
Discussing the theme of the luncheon: Making the Nigerian capital market a catalyst for change, the panel advised that a unified regulatory system will lead the market and its regulators along one path, to enable ease in business, provided that the regulators actually have the desire to abide by regulations.It was further explained that the country’s level of financial literacy also needs to be boosted by an intimate engagement of different interest groups.
In a bid to address concerns regarding Nigeria’s lack of new capital market products, Odedina stated that the NASD OTC market exists as an alternative platform in the capital market, currently in the process of offering innovative solutions such as Crowdfunding and a trading platform for private equity.

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