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Companies can hedge risk through dual listing — NSE CEO

By Nkiruka Nnorom

Companies that list their shares on two separate stock exchanges around the world have the advantage of diversifying their risk, says the Chief Executive Officer of the Nigerian Stock Exchange, NSE, Mr. Oscar Onyema.

According to him, this is made possible through the involvement of multiple investor classes available to such issuer, which it would not ordinarily have in just one market.

Such companies, according to him, also benefit from differences across macro-economics among others.

He expressed the view at a dual listing conference organized in conjunction with the London Stock Exchange Group (LSEG) themed: “Leveraging Cross-Border Capital Markets for Sustainable Growth”, saying that that the synergy with the LSEG is meant to reduce risk for companies interested in listing their shares on both markets.

Onyema emphasized that the synergy was deliberate and strategic as it is geared towards encouraging seamless cross-border access between both capital markets to ultimately drive deeper capital markets that enable capital formation for businesses and governments.

He explained that the synergy would further create larger liquidity pools and greater competitiveness for investors, as well as enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers.

He assured that NSE is risk free for cross-border listing, saying; “We try to build risk control into all the activities we do, including product roll out and relationships such as this. We looked at the risk aspect and we put a lot of efforts in ensuring that the processes are seamless”.


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