Business
Twitter’s IPO gives NYSE momentum in battle against Nasdaq
NEW YORK – Twitter Inc’s successful debut on the New York Stock Exchange could help the Big Board win a title it has never held before: the No 1 US listing venue for technology companies.
Nasdaq OMX Group had easily scored the most tech initial public offerings every year from 1999 until last year, when NYSE Euronext pulled even, according to Thomson Reuters data.
Including Twitter this week, 19 tech companies have chosen to go public on the NYSE in 2013, while Nasdaq has won only 14 listings so far this year. Tech IPO proceeds also favor the NYSE over Nasdaq, at $4.6 billion to $1.9 billion, according to Thomson Reuters data.
The reversal is attributed partly to Nasdaq’s high-profile bungling of Facebook Inc’s debut last year, and partly to changes the NYSE made to its listing standards in 2008 to make it easier for smaller, growing companies to qualify. “I wouldn’t even say they won Twitter, I’d say we lost it,” said Bruce Aust, who has headed Nasdaq’s listings business for the past decade. He said that since 2008, when the NYSE changed its listings rules and lowered requirements for market capitalisation and income limits, every deal has become competitive.
“They did that because they realised that once a company lists on Nasdaq, they really stay with us,” said Aust. Twitter began trading at NYSE. Reuters Facebook’s $16 billion IPO was highly anticipated but a glitch in Nasdaq’s fully electronic system set off a series of events that some market makers said prevented them from knowing their positions in the stock – and led to them to lose $500 million collectively.
Nasdaq is voluntarily compensating firms a total of $41.6 million, and was fined another $10 million by the US Securities and Exchange Commission. In contrast, Twitter’s listing on the Big Board went off without a hitch on Thursday, with the stock gaining an eye-opening 73 percent. The NYSE, one of the last exchanges with a trading floor staffed by human beings, had the world’s media observe the debut, with NYSE and Twitter executives, as well as X-Men and Star Trek actor Patrick Stewart, on hand to help promote the offering.
“Clearly, the Facebook fiasco has hurt Nasdaq and the fact that the NYSE pulled off the Twitter IPO with no technological glitches certainly is good for them,” said Jay Ritter, a professor and IPO expert at the University of Florida. Ritter said the probability was “incredibly good” that had the Twitter IPO gone to Nasdaq, it would have gone smoothly as well, and that in reality, there is not much difference to companies when it comes to listing on one exchange or the other.
But the listing business is largely about prestige. WINNING AND LOSING This year has seen the strongest market for US IPOs since 2007, as equity markets soared, helped by continued economic growth and the Federal Reserve’s efforts to keep interest rates low.
The NYSE and Nasdaq have taken steps this year to form closer relationships with technology firms before they go public. The moves come with the passing of the Jumpstart Our Business Startups (JOBS) Act last year in March, which loosened a number of securities regulations in hopes of boosting capital raising, and thereby increasing job growth.
The NYSE said in September it was getting into the $1 trillion-a-year private placement business through a minority stake in Ace Group Inc, which runs a private issuance platform for equity, debt and other securities. Nasdaq plans to create a market for trading shares of unlisted companies in a joint venture with trading platform SharesPost Inc, which now lists more than 200 private companies, including Pinterest, Foursquare, eHarmony and Tumblr.
“We’ll be involved much earlier with these private companies and eventually we hope they’ll go public on Nasdaq,” said Aust. With tech giants like Apple Inc, Microsoft Corp, Google Inc, and Amazon.com Inc in its roster, Nasdaq traditionally has seemed the natural place for technology listings. In 1999, before the dot-com bubble burst, Nasdaq had 246 technology IPOs, or 95 percent of the listings, while the NYSE had just seven, or 2.7 percent, according to Thomson Reuters data.
Fast forward to 2012, and the NYSE had caught up to Nasdaq in tech IPOs, with each recording 17, though proceeds of the NYSE listings, at 2.8 billion were eclipsed by the Nasdaq listings, at $17.5 billion, which benefited from the Facebook IPO. Nasdaq uses a different system for categorizing tech companies, including, for instance, telecommunications services firms in its count.
Thomson Reuters only includes companies classified as high technology using the Standard Industrial Classification system, which groups telecoms separately. Using Nasdaq’s methodology, it has hosted 24 technology IPOs this year, against the NYSE’s 22. The NYSE uses yet a different classification system, and says it has had 26 technology listings so far in 2013.
Doug Chu, head of the NYSE’s Silicon Valley office, pointed to the Big Board’s 2008 listings change as the turn-around point for technology company IPOs. “The culture at the NYSE has changed over the last few years. We’re more proactive and focused on technology and growth companies,” Chu said. Reuters
Business
MOSOP Cautions Against Secret Drilling in Ogoniland
There are allegations that secret drilling of crude oil has begun in some Ogoni communities, even as talks between the Federal Government and representatives of the people on the planned resumption of oil exploration in the area remain inconclusive.
Though the Movement for the Survival of the Ogoni People (MOSOP), in a statement released in Port Harcourt on Sunday by the Secretary-General of MOSOP, Stephen Nmane, insist that the citizens have embraced the idea of oil resumption because of the integrity of its leaders involved in the talks.
According to MOSOP reports of alleged compromise and alleged corruption are worrisome.
Also, MOSOP said it wanted the names of 40 Ogoni youths employed by the Nigerian National Petroleum Company Limited (NNPC Ltd) published for the sake of transparency, alleging that names of foreigners were smuggled onto the list.
Nmane specifically said oil drilling had been noticed in Ogoni communities in Tai and Eleme local government areas without the knowledge of the people, saying MOSOP condemned any forced re-entry into Ogoni, describing it as a betrayal of the spirit of the dialogue process.
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The statement was titled ‘Alarming Compromise of The Ogoni Oil Production Resumption Process: The Reported Massive Corruption of Leaders of The ODC’.
“It is appalling as it is disappointing that while dialogue between Abuja and Ogoni is ongoing, preliminary oil production is operationalised in parts of Ogoni by the Federal Government without the consent and social licence of the Ogoni community.
“In Ban-Ogoi and Alesa-Eleme areas, oil drilling with its attendant health and environmental toxicity is ongoing.
“To us, this is in bad faith as it betrayed the godly spirit of the dialogue.
“Therefore, we cannot but condemn this forced re-entry through the back door. Thus, we demand immediate halt of the operations and the needful done,” the statement read.
It added, “The Movement for the Survival of the Ogoni People, MOSOP, is alarmed at a damning report circulating in Ogoni and across social media platforms, alleging massive economic corruption of some key leaders of the Ogoni oil resumption dialogue process.
“This is most concerning as it is at the expense of our people. Since the allegations impugn the credibility and trustworthiness of these facilitators, the Ogoni Dialogue Committee (ODC) and its leadership, MOSOP would urge the body to publicly clear its name of the weighty allegations.
“It equally warned of dire consequences as Ogoni will not sit idly by while accrued benefits to the community are illicitly cornered by a greedy, heartless few pretending to work for our common good.
“Notwithstanding acknowledged doubtful integrity of some of these leaders, our people had embraced the process in the hope that envisaged opportunities offered would create enduring succour.
“The feeling that the hope would not materialise owing to corruption, occasioning anger and tension, is understandable. Hence, we call on the people to remain calm and law-abiding while efforts are made to address the issues.
“Saddeningly, information available to MOSOP indicates that some bigwigs of the Ogoni Dialogue Committee had been compromised to facilitate the re-entry. In fact, Ogoni youths who had protested at the operational bases reported that engineers at these sites told them to approach an ODC chieftain instead.
“Furthermore, the report also implicated the ODC facilitators in other shoddy deals. It revealed their involvement in another multi-million-dollar oil pipeline contract to be executed across Ogoni oil fields preparatory to oil resumption proper.”
It warned the Federal Government and investors interested in investing in Ogoni to be wary of predators.
“We would further counsel against hasty agreement with anyone or group without appropriate due diligence, as such will not be binding on us.
“We wish to make it categorically clear that all entered agreements on behalf of Ogoni are shoddy, unacceptable, and null and void,” the statement added.
Business
DPRP’s Free Fuel Delivery Expands to Kano, Imo, Nearly 10 More States
In a move expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices at the pump, the Dangote Petroleum Refinery & Petrochemicals (DPRP) has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa States.
A company statement on Sunday in Lagos, has it that the initiative, which began with deliveries to Lagos, Ogun, Rivers, Kaduna, Abuja and Delta States, is designed to bring petroleum products closer to marketers and retailers while removing the cost of transporting products over long distances from the refinery to various parts of the country. By absorbing the delivery cost, the refinery is reducing one of the key expenses built into the downstream distribution chain.
Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was designed to ensure that the benefits of domestic refining translate into tangible savings for businesses and consumers. “The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers. Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”
READ ALSO: Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room
The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which said the initiative would significantly reduce some of the financial and logistical pressures confronting independent marketers and contribute to lower prices for consumers.
National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the initiative addresses a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may then have to wait for extended periods before their orders are loaded and transported.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said. “There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”
According to him, the refinery’s delivery arrangement reduces the period for which marketers’ funds remain tied up, improves cash flow and allows businesses to deploy their capital more efficiently.
“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” he said.
Ukadike said the initiative could also have a direct impact on pump prices because transportation represents a cost that ultimately forms part of the price paid by consumers.
“You also have less risk, and you have petroleum products at your doorstep. Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.
The reduction in distribution costs is particularly significant for marketers serving locations far from the refinery. Under conventional distribution arrangements, petroleum products transported over long distances incur additional costs associated with haulage, vehicle operations, driver expenses, insurance, road risks and other logistics. Removing or reducing these costs can improve the economics of supplying those markets and create greater scope for competitive retail pricing.
The initiative also reduces the operational risks associated with moving large volumes of petroleum products over long distances. By taking products closer to their destination markets, the refinery is helping to shorten the supply chain and improve the reliability and efficiency of product distribution.
Ukadike commended the management of Dangote Refinery for the initiative and urged the company to extend the programme to more locations across the country, particularly in the northern states, to promote wider access to competitively priced petroleum products.
He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.
“This is the beauty of deregulation and competition,” he said.
The expansion comes as Nigeria’s downstream petroleum sector continues to adjust to the growth of domestic refining capacity and a more competitive market environment. The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, is increasingly supplying refined petroleum products to the domestic market while also expanding its presence in international markets.
The free delivery initiative adds another dimension to the refinery’s impact on the downstream sector. Beyond increasing domestic supply, the refinery is now taking steps to reduce the cost of moving those products from the refinery to consumers.
For motorists and households, the potential benefit is straightforward: the lower the cost of moving petrol through the supply chain, the greater the opportunity for marketers to reduce the price consumers pay at the pump.
Business
Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room
Dangote Transport has taken another major step towards improving road safety with the launch of a state-of-the-art Driver Monitoring Control Room (DMCR) that allows drivers operating its trucks to be monitored in real time while on transit across Nigeria.
The innovative facility, located at the Dangote Transport operational base in Ibese, Ogun State, highlighted the company’s commitment to leveraging technology and best practices to reduce road accidents and improve drivers’ behaviour.
The Head of Operations, Dangote Transport, Ibese, Mr. David Idiege, described the DMCR as one of the latest additions to the company’s comprehensive safety architecture.
According to him, the facility enables transport control personnel to observe drivers while they are on the road, monitor compliance with safety standards and promptly intervene whenever risky behaviour is detected.
“We are constantly looking for innovative ways to strengthen safety across our transport operations. The Driver Monitoring Control Room represents another significant milestone in our efforts to ensure that all journeys are conducted safely and responsibly,” Idiege said.
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He explained that the initiative forms part of a broader strategy aimed at reducing accidents, enhancing operational efficiency and safeguarding both the drivers and other road users.
“Safety remains our highest priority. We recognize the responsibility that comes with operating a large fleet of vehicles across the country. That is why we continue to invest heavily in technology, systems and training that help us maintain the highest safety standards,” he stated.
Idiege disclosed that the company has, over the years, implemented several safety measures designed to improve driver performance and minimize risks on the road.
He listed these initiatives to include speed limiters, vehicle immobilizers, speed boosters control systems, facial recognition devices, journey management protocols, mandatory drug and alcohol testing, compulsory rest periods for drivers, periodic recertification as well as regular training and retraining programmes.
“Our approach is holistic. Technology alone is not enough. We combine technology with strict operational procedures, driver welfare programmes, competency assessments, recertification exercises and continuous capacity building to ensure that our drivers remain professional and safety-conscious at all times,” he added.
He further explained that compulsory rest policies help combat fatigue, one of the leading causes of road accidents globally.
“We do not encourage driver fatigue. Every driver is required to comply with our journey management procedures and mandatory rest schedules. We understand that alert and healthy drivers make safer decisions on the road,” he said.
Also speaking during the tour, the Head of Transport Control, Mr. Ifeanyi Ezeala, who conducted journalists around the control facility, explained that the on-board camera system installed across thousands of Dangote trucks was facilitated by technology partner Nova Tracks.
According to Ezeala, the camera system enables real-time visibility into driver conduct and provides transportation managers with critical information needed to proactively address safety concerns.
“The technology allows us to monitor driver activities while journeys are in progress. The cameras provide live feeds and alerts, helping us detect behaviours that could compromise safety and enabling us to take immediate corrective action,” Ezeala explained.
He noted that the monitoring solution is not intended to police drivers but rather to support them and ensure they operate under safer conditions.
“Our objective is preventive rather than punitive. We want to identify potential risks before they develop into incidents. By having visibility into operations in real time, we can contact drivers where necessary, provide guidance and support safer driving decisions,” he said.
Ezeala stated that the system has enhanced fleet management capabilities by providing valuable operational data that strengthens decision-making and supports the company’s overall safety objectives.
“The transportation industry is evolving rapidly, and technology now plays a critical role in fleet safety management. By integrating advanced monitoring systems into our operations, we are creating a safer environment for our drivers and for all road users,” he said.
He commended Nova Tracks for its role in deploying the technology and supporting the company’s vision for safer transportation operations.
The Driver Monitoring Control Room is the latest in a series of investments by Dangote Transport aimed at promoting safe driving, reducing accident risks and advancing operational excellence across its nationwide logistics network.
With thousands of trucks moving raw materials and finished products daily across the country, the company says it will continue to deploy innovative solutions that support safer journeys, improve driver performance and contribute to a safer road transport ecosystem in Nigeria.





