Capital market experts have expressed optimism that the high level of participation from investors in the on-going right issues of some quoted companies on the Nigerian Stock Exchange (NSE) would stir up activities in the primary market segment as well as spur the revival of public offers.
They argued that the recent resurgence recorded in the primary market in terms of activities, is an indication that the investing public is gradually coming back to the market, largely due to reforms in the secondary market, which has attracted both foreign and local investors to the market in the past few months.
According to them, if the trend is sustained, the multinationals and small-scale businesses that are not listed may approach the stock market for listing, further contributing to market growth.
A rights issue is an offer of new shares from a company to its existing shareholders on or before a prescribed date in proportion to their existing equity holding, and is priced at a discount to the market price of the stock as an incentive to the shareholder to buy them.
Comment here