Wednesday, 30 October 2013

UK private equity firm, GTI to boost Nigerian market liquidity

International Commerce Management Limited (ICML), a United Kingdom-based global private equity firm and GTI Capital Group, a Nigerian financial services group, are exploring ways to boost the market-making and liquidity in the Nigerian capital market with a view to enhancing the attractiveness of the market to foreign investors.

In furtherance of the discussions between the two investment and financial services firms, the management of ICML made its maiden visit to Nigeria and together with the top management of GTI held talks with the Nigerian Stock Exchange (NSE), NASD Plc-the over-the-counter (OTC) market, Wema Bank, Mobitel Limited and other stakeholders in the Nigerian capital market.

President, International Commerce Management Limited (ICML), United Kingdom; John Kavvouras, said the Nigerian capital market has enormous potential and holds lot of opportunities that ICML, working with GTI Capital, can bring its global knowledge and capital to help in creating values for all stakeholders.

He said one evident area of under-capacity that the management of ICML has noted and would seek to create values thereon is the low level of market making capability in the Nigerian market.

According to him, the number one thing that the Nigerian market is crying out for is market making capability because what the international investors need is liquidity. ICML and GTI Capital would work together in this area, combining their vast capital and global and domestic knowledge to make the difference.

Market making is a technical term that generally refers to the system of providing liquidity to securities through provision of bid and offer prices in the trading system of a stock exchange. Generally, market makers ensure a fair and orderly market in their securities of responsibility and assist in the effective functioning of the overall market.

Kavvouras pointed out that enhanced market making capability will boost liquidity of the market and will naturally lead to increased inflow of foreign portfolio investments.

“Pretty terrific; lot and lot of what to do, it’s an Exchange that is developing, emerging, and in line with what we do. There are so many things that the Nigerian market can tap into. This Exchange; Lagos, should be the financial capital of the Sub Saharan Africa,” Kavvouras said when asked about his experience in his maiden visit to the stock market.

He commended the expertise and formidable market structures as well as foresights of the management of GTI Capital, noting that it has the right attributes for a value-driven partnership.

“GTI Capital, from all what I have seen- again this is my first time in Nigeria; is most forward-thinking. The management is intelligent and focused, they know there is opportunity out there and they are ready to make a move on it. GTI Capital is ready to seize the Nigerian market,” Kavvouras said.

In his remarks, Vice President, Emerging Market, International Commerce Management Limited (ICML) UK, Samuel Retiola, said the Nigerian economy has a positive outlook in spite of obvious challenges.

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