Housing and hospitality group Haldane McCall plc sees its listing on the Main Board of the Nigerian Exchange Limited as the route to raise future capital, and especially to address a deficit of as many as 20 million housing units in Nigeria.

On 20 November, the company listed 3.12 billion ordinary shares of 50 kobo each at NGN 3.84 (USD cents 0.2) per share under the ticker HMCALL. It started with a market capitalization of nearly NGN 12bn ($7.34m). The listing was by introduction, meaning there was no new capital raising as part of the West African share offer.

According to this 4 December market report on Kwayisi, “it was the #1 most traded stock on the Nigerian Stock Exchange over the past week (27 Nov – 4 Dec). HMCALL has traded a total volume of 587m shares—in 772 deals—valued at NGN 3.36bn”. On the first day of trading, the price climbed to NGN 4.22, up 9.9%, and at the end of trading today (4 December) was NGN 5.86, down from its peak of NGN 6.78 but still a significant 52.6% climb on the listing price and market capitalization.

NGX platform for more housing

At the listing, Edward Akinlade, Group Managing Director of Haldane McCall, highlighted the opportunities (quoted in the NGX press release): “This step not only enhances our visibility in the capital market but also equips us with the resources to expand our operations and contribute meaningfully to addressing Nigeria’s housing deficit. We are committed to delivering value to our shareholders while driving sustainable development in the real estate and hospitality sectors.”

Alhaji Dr. Umaru Kwairanga, Group Chairman, Nigerian Exchange Group Plc, said: “At Nigerian Exchange Group, we remain dedicated to providing the right platform for companies like Haldane McCall to achieve their growth ambitions while driving sustainable economic development in Nigeria.”

Jude Chiemeka, CEO of NGX, said the stock exchange listing would help in future capital raises: “By embracing the NGX platform, Haldane McCall gains increased visibility, credibility, and access to capital, which will support its efforts in addressing Nigeria’s housing deficit while delivering value to shareholders.”

At least 30% dividend pledged

Akinlade had told the Facts Behind the Listing presentation, according to this report on Vanguard news: ”What sets our Company from our peers is that we buy land from banks, develop it and sell. We want to build affordable houses for Nigerians. We want to expand through acquisition of companies. We have 100 acres at Majidun, Ikorodu, 4,120 sqm at Opebi Road, Ikeja, 30 acres of land at Isihun, Abeokuta, Ogun State, 3,310 sqm at Akin Olugbade, Victoria Island and 1,200 sqm at Alade Street, Ikeja among others.” He said future plans include developing 1,000 affordable units in Lagos over five years, 100 middle-class homes across Lagos each year, 50 rental homes across Porto-Novo, Republic of Benin, and expansion of the land-banking holdings.

He pledged: “Sustained growth in the Company’s net profit, regular dividend payment of 30% of the net earnings, maintenance of strong investor relations to reinforce investor confidence and provision of timely information of the company’s activities in line with the post listing requirements of NGX.”

Earlier he said according to a Vanguard news report: “We also need visibility to sell our story, come up with capital raising options by equities or fixed income securities. We can leverage the opportunities enjoyed by listed companies to do huge affordable homes in Lagos and Abuja particularly. These are the two markets that we want to look into and don’t forget that there are so many abandoned building projects in these two locations while so many people are suffering for homes to live in, that is what we are going to use the money for.”

The listing has been in the pipeline since July 2022, according to this press release about the Securities and Exchanges Commission regulatory approval. Haldane McCall owns Suru Express Hotels and Suru Homes.

(photo: NGX)