What does an Issuing House Do?

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An issuing house serve as a Financial Advisers to quoted and unquoted companies, government institutions and state governments seeking to raise additional funds or funds to develop capital projects such as roads, schools, hospitals, infrastructures, etc. from the Capital Market.

Their activities are not limited to the big companies and government, they also function as financial advisers, stockbrokers or Issuing House to would-be companies that seek to be listed on the floors of the Nigeria Stock Exchange (NSE) either through:

Initial Public Offerings (IPOs), in this sense they provide advice on the most favourable financial and capital structure, they liaising with regulatory agencies/authorities, they coordinate the entire activities of parties involved to ensure a successful exercise and to top it all they handle all necessary documents.

Issuing Houses also extend to companies who may wish to raise working capital by way of Private Placements  from members of the investing public, here, they advise them, they develop the strategy/timing, steps necessary to ensure legal and  regulatory compliance are put in place; and drafting of the placement memorandum  document and marketing of same for maximum success is undertaken.

 

They also issue bonds, this is an interest-bearing debt security/instrument issued by corporate bodies and government agencies for the financing of infrastructure or for expansion projects.

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