Question 5
ICAN
•
2026
•
FINANCIAL MANAGEMENT
•
mixed
Case Stimulus
Omega Industries Ltd is a large Nigerian manufacturing company that has been privately owned for over 15 years. The company has achieved strong profitability and has expanded into neighbouring West African countries. Recently, the board of directors has been debating whether to seek a full listing on the Nigerian Exchange Group (NGX). The managing director believes listing will help the company raise funds for expansion into the renewable energy market, while some existing shareholders are concerned about losing control and facing excessive compliance costs. The finance director has asked you, a financial consultant, to advise the board on two key issues: (i) The likely advantages and disadvantages to Omega Industries and its shareholders of obtaining a full stock exchange listing. (ii) The factors that should be taken into account when determining the issue price of new equity shares, if the company proceeds with the listing.
Requirements
(
a
)
Discuss the potential advantages and disadvantages of obtaining a full stock exchange listing.
(
b
)
Analyse the key factors that should be considered when setting an issue price for new equity shares in a flotation.
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About This Question
This is
Ican
2026
Financial Management
Question 5.
It is one of the
mixed
questions from the
2026
Ican
Financial Management
examination.