MTN Nigeria, FCMB, and Nigerian Breweries are among the companies to watch as trading on the Nigerian stock market begins on Monday.
The stocks on the MINIECHAT stocks watchlist are being kept an eye on for potential trading or investment opportunities. A list of stocks may be informally created by an individual for investing objectives. Nonetheless, we went to the trouble of doing it based on certain criteria in order to save you the trouble.
Please take notice that the Ripples Nigeria Stocks Watchlist does not constitute a recommendation to buy, sell, or hold. Prior to making any investing decisions, it is essential to speak with your financial adviser.
The telecoms business has suggested a new method of distributing dividends to shareholders in an effort to boost and halt the dwindling of its capital base.
To provide shareholders the option of choosing shares rather than cash as payment for their dividend, MTN Nigeria suggested a scrip dividend scheme.
According to the business, shareholders who choose to receive shares would assist MTN Nigeria have more cash on hand for operating expenses, lowering their reliance on loans.
The annual general meeting in April 2023 will decide whether to execute the new dividend and unite the two firms.
In order to borrow N20.68 billion as part of the company’s N300,000,000 debt bond issuance program, FCMB has contacted the capital market.
According to the financial institution, the loan will help the company’s liquidity or overall capital adequacy ratios and be utilized to support operations.
FCMB obtained the financing from trustees, high net-worth individuals, other financial institutions, and finance corporations.
The loan will increase the amount of debt FCMB has issued, which as of December 31, 2022 was N84.55 billion, and would have a negative impact on the company’s income.
Breweries in Nigeria
A number of cases against the maker of alcoholic and soft drinks might cause Nigerian Breweries to lose 17.9% of its net earnings.
The claims from the case, according to Nigerian Breweries, are valued at N2.5 billion. Nevertheless, in the company’s directors’ and independent legal counsel’s judgments, the chance of loss is less than 50%.
The number of cases that are now pending for the year 2022 has climbed from N1 billion to N2.5 billion.
The business disclosed this in its financial statement from the previous year. If the proceedings are lost, the lawsuits pose a danger to Nigerian Breweries’ capacity to pay dividends, which might have an adverse effect on investors and the trust of the capital market.