Nigerian bourse introduces Premium Board Index as Dangote Cement, FBN Holdings, Zenith make entry

DangoteThe Nigerian Stock Exchange (NSE) Tuesday launched a new listing platform – the Premium Board and the associated Premium Board Index, in keeping with its commitment to promoting Africa’s biggest companies, as well as influencing the economic growth and development of Nigeria.

The companies that have qualified for the Premium Board are Dangote Cement plc, FBN Holdings plc, and Zenith International Bank plc, with market capitalisation of N2.87 trillion, N277.7billion and N587.43 billion, respectively. They all passed the Corporate Governance Rating System (CGRS) before applying for the Premium Board.

The Premium Board is for issuers with minimum market capitalisation of N200 billion and highest corporate governance standards. Companies aspiring to be listed on the Premium Board must achieve a minimum score of 70 percent on the stringent CGRS.  In addition, they are required to maintain a minimum free float of 20 percent of their issued share capital or a free float value equal to or above N40 billion.

Oscar Onyema, CEO, NSE, said: “The Premium Board Index would serve as a benchmark for investors looking to track the performance of large firms with excellent corporate governance and sustainable business models. 

Typically, similar indices outperform their market wide index by double digits. The NSE Premium Board Index had a four-year average return of 17.65 percent versus the All Share Index return of 11.31 percent over the same period.