NSE partners Renaissance Capital for Exploration and Production (E&P) Valuation Training


July 3, 2013 / NSE


Renaissance Capital, the leading emerging markets investment bank, partnered with The Nigerian Stock Exchange (NSE) for a one-day Institutional Investors’ Clinic at the Civic Centre, Victoria Island, Lagos. The clinic was aimed at bringing regulators, operators, investors and E&P corporates up to date on important technical and factual information about the E&P industry.


The NSE has been working on several initiatives aimed at providing growth opportunities domestically and transforming Nigeria into one of the most vibrant capital markets in the world. The Investors’ Clinic Series is one of the investor education initiatives designed by the NSE to address low investor confidence and provide valuable information for all investorsin various sectors of the economy.


The clinic offered:

♦             Overview of Oil and Gas in Nigeria, including understanding E&P companies

♦             Valuing E&P companies with reference to case studies and the E&P life cycle.

Experienced facilitators moderated discussions on key areas and each session was highly interactive with panel discussions for each session bringing together all the stake holders. Renaissance Capital analysts discussed understanding and valuing E & P companies as well as equity issuance. The clinic also presented case studies on dividend and capital appreciation. Cyril Odu, former Chairman ExxonMobil Nigeria and currently principal at Africa Capital Alliance presented “Oil and Gas in Nigeria – The Investment Case” while Dr. Jude Amaefule, Vice-Chairman/Chief Executive Officer Emerald Energy Resources Ltd spoke on “Building an indigenous E & P company” which discussed growth of an E&P company from the drill bit versus acquisition of mature assets as is the current trend.


Oscar Onyema, Chief Executive Officer NSE, said “The NSE Investors’ Clinic Series is one of the investor education initiatives designed by The Exchange as part of its investor protection program to enhance confidence and create better informed investors.  The program is meant to enhance investors’ understanding of the basics of investing around portfolio construction, asset allocation and risk diversification.  A well informed investor is a better protected investor.  The other major aspect of our investor protection program is the Investor Protection Fund, whose Board of Trustees has been inaugurated and is working on the rules and guidelines for the Fund.”


Onyema emphasized that the investor protection program is one of five pillars on which the NSE's strategy rests.  The other four being: targeted business development, strong regulation, 21st century technology strategies, and growth enabling market structure.  These are wrapped by our market development initiatives.  "The Exchange will continue to execute its transformation to become one of the most vibrant securities markets in the world.” said Onyema.


Yvonne Ike, Chief Executive Officer, Renaissance Capital West Africa went on to say “At Renaissance Capital, we are of the firm view that we must leverage the growth potential and dynamic investment climate in Nigeria, by constantly developing initiatives to help deepen the knowledge base in the market to take advantage of the dynamic investment climate in Nigeria and improve the capital market landscape as a whole.


“The Nigerian Stock Exchange is excited about its growing pipeline of indigenous E & P companies planning a listing. This investor clinic in collaboration with Rencap is an important step in preparing investors to understand what will be a new sub sector on the Exchange and in contributing to the success of the upcoming offers” Haruna Jalo-Waziri, Executive Director Business Development , NSE added.


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