- The race to $1 billion capitalisation has intensified among companies
- On the Nigerian Exchange, there are nine companies with stocks valued at over $1 billion
- From Airtel Africa, Dangote Cement and BUA Foods, TheRadar highlights these companies
There has been a wave of $1 billion valuation among companies around the world.
In Nigeria, one of the leading fintechs, Moniepoint, attained unicorn status after it raised $110 million in equity financing in its Series C funding.
With the new funding, Moniepoint became Africa’s eighth unicorn, joining the league that already includes Interswitch, Opay, Flutterwave, Wave, Andela, Chipper and MNT-Halan.
However, the unicorn boom is not restricted to the fintech sector. On the Nigerian Exchange (NGX), many companies are within the billion-dollar-valuation band as investors' delight, while raking in profits for shareholders.
Nigeria’s stock market landscape
Of the 160 companies listed on the NGX as of November 2024, only a few have $1 billion in market capitalisation.
The NGX currently has a total market capitalisation of N58.91 trillion ($35.31 billion), but only nine firms account for 70.31 per cent of the amount.
The top three companies on the NGX, Airtel Africa, Dangote Cement, and BUA Foods, account for 39.77 per cent of the market capitalisation, with a collective value of N23.535 trillion (approximately $14.046 billion).
TheRadar highlights the nine top traded companies on the NGX whose market capitalisation surpasses $1 billion, using an official exchange rate of N1,675.49, as of October 31, 2024.
Companies worth $1 billion on the NGX
1. Airtel Africa
Airtel Africa takes the lead as the most capitalised company on the NGX. The telecommunications company holds 13.97 per cent of the equity market with a capitalisation value of N8.26 trillion ($4.93 billion).
In its report for the half-year ending September 30, 2024, the telco recorded $2.37 billion in revenue and a profit before tax of $178 million. Airtel Africa’s share price rose 16.55 per cent year-to-date (YTD) to close at N2,200 on October 31.
The company also reported that its currency revenue declined by 9.7 per cent to $2.37 billion during the period due to currency devaluation in Nigeria, Malawi, Zambia and Tanzania.
According to the telecommunications company’s half-year financial statement, its revenue in constant currency increased by 19.9 per cent in the period, while operating profit fell by 20.3 per cent to $706 million within the period.
2. Dangote Cement
The industrial goods giant is the second most valued company in Nigeria as of October 31. Dangote Cement controls 13.79 per cent of Nigeria’s equity market, with a market capitalisation of N8.15 trillion ($4.86 billion).
Dangote Cement generated N2.56 trillion ($1.66 billion) in revenue and a profit before tax of N406.38 billion ($263.55 million) in the first nine months of 2024, while its share price increased 49.67 per cent YTD to close at N478.
3. BUA Foods
BUA Foods is the leading consumer goods company in Nigeria and the third most capitalised, with a market value of N7.10 trillion ($4.24 billion), accounting for 12.01 per cent of the equity market.
In the first nine months of 2024, BUA Foods made N1.07 trillion ($0.694 billion) in revenue and a profit before tax of N217.65 billion ($141.15 million), Nigeria’s economic shocks notwithstanding.
As of October 31, the company’s share price increased 98.54 per cent YTD to reach N394. It trades at 50.36 times its trailing 12 months earnings per share.
4. MTN Nigeria
Telecommunications giant MTN Nigeria accounts for 6.21 per cent of Nigeria’s equity market, with a market capitalisation of N3.67 trillion ($2.19 billion).
In the first nine months of the year, the company made N2.37 trillion ($1.53 billion) in service revenue, though it suffered N713.63 billion ($462.81 million) loss before tax and lost N514.9 billion after tax due to naira depreciation within the period.
There have been concerns about the company’s financial health going by the poor performance of its stocks, which declined 33.03 per cent YTD to N175.10 as of October 31.
The telco’s subscriber base also declined by 0.9 per cent to 77.0 million within nine months, which is attributed to the recent National Identity Number (NIN)-SIM card verification exercise mandated by the Federal Government, which led to the deactivation of 64.3 million lines not linked to NIN.
The company has gone the commercial paper route in a bid to diversify funding sources. Following the 150 per cent oversubscription of its Series 11 and 12 commercial papers, the telco issued another N50 billion Series 13 and 14 commercial paper.
5. Seplat Energy
After its recent acquisition of ExxonMobil’s Nigerian assets, Seplat Energy’s stocks have traded in the highs. The news of the deal excited the equity market as Seplat’s stocks went up by 9.99 per cent to N5,738.
Seplat Energy accounts for a 5.63 per cent share of the equity market with a market capitalisation of N3.35 trillion ($2.00 billion).
Its nine-month profit before tax was N366.71 billion ($237.82 million), while its revenue stood at N1.07 trillion ($0.694 billion).
As of October 31, the company’s share price grew 146.75 per cent YTD to N5,700, trading at 38.47 times its trailing 12 months' earnings per share.
6. BUA Cement
With a market capitalisation of N3.31 trillion ($1.97 billion), BUA Cement is one of the top nine most capitalised stocks on the NGX.
In the first nine months of 2024, the company’s revenue stood at N583.40 billion ($0.378 billion) and a profit before tax of N63.01 billion ($40.86 million).
As of October 31, the share price of the industrial goods company rose by 98.54 per cent YTD to close at N97.80, trading at 78.70 times its trailing 12 months' earnings per share.
7. Geregu Power
As of October 31, the market capitalisation of Geregu Power was N2.87 trillion (approximately $1.71 billion), which accounts for 4.86 per cent of Nigeria’s equity market.
The company reported revenue of N112.58 billion ($0.73 billion) and a profit before tax of N36.26 billion ($23.51 million) as of nine months 2024.
Geregu Power’s share price grew by 188.22 per cent YTD to close at N1,150.00, as of October 31 and currently trades at 102.36 times its trailing 12 months earnings per share.
8. Transcorp Power
Transcorp Power has a market capitalisation of N2.69 trillion ($1.61 billion), 4.56 per cent of the total market value.
The power company was listed on the NGX on March 4, 2024, at N240 per share, but as of October 31, its stock grew by 49.96 per cent to close at N359.90 and trading at 34.36 times its trailing 12 months earnings per share.
It reported revenue of N223.55 billion ($0.144 billion) and a profit before tax of N81.12 billion ($52.60 million) in the third quarter of 2024.
9. Aradel Holdings
A market capitalisation of N2.15 trillion (approximately $1.28 billion), which is 3.64 per cent of the equity market places Aradel Holdings on the list of the nine most capitalised stocks on the NGX.
The increase in its nine-month revenue to N377.58 billion ($0.244 billion) and a profit before tax of N191.45 billion ($124.16 million) is indicative of investors’ interest in the company’s stocks.
The oil and gas company was listed on the Main Board of the NGX on October 14, 2024, at N702.69 per share. However, its share price has declined by 29.54 per cent to N459.10 as of October 31. It currently trades at 14.82 times its trailing 12 months earnings per share.
CBN, SEC sanction 10 banks for forex violations
Meanwhile, TheRadar reported that the regulatory agencies responsible for overseeing the activities of deposit money banks in Nigeria sanctioned 10 banks for violations of foreign exchange guidelines and other regulatory offences.
These agencies, including the Central Bank of Nigeria and the Securities and Exchange Commission, imposed fines totalling N1.502 billion as penalties within the first six months of 2024.