AVA Capital says investors’ capital protection biggest responsibility in post-listing era

AVA Capital Plc has identified preserving investor trust as its foremost priority following its recent listing on the Nigerian Exchange Limited (NGX).

The company said stronger governance, transparency and accountability will underpin its long-term growth as a publicly quoted company.

The investment banking group noted that maintaining investor confidence is fundamental to its business model, adding that while it continues to navigate inflation, exchange rate volatility and interest rate pressures, protecting investors’ capital remains its biggest responsibility in the post-listing era.

Kayode Fadahunsi, chief executive officer of AVA Capital Plc speaking during an executive media roundtable in Lagos on Tuesday said the firm’s greatest risk extends beyond macroeconomic headwinds, stressing that investor confidence remains the foundation of an efficient capital market.

“The highest risk is to continue to responsibly connect opportunities to capital. If the person that connected the opportunity to capital loses people’s capital, that trust is gone. It is a very serious risk.”

He said inflation, exchange rate movements, monetary policy and political developments would continue to influence investment decisions, but preserving trust remains central to the company’s role of connecting investors’ funds with credible investment opportunities.

Fadahunsi said the company’s transition to a publicly listed entity has significantly expanded its governance and disclosure obligations.

“We are now accountable to a broader community of shareholders, regulators, clients, employees and the investing public. With that comes a deeper commitment to transparency, good governance and open engagement,” he said.

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He explained that AVA Capital’s admission to the NGX Main Board through a listing by introduction was driven by governance objectives rather than the need to raise fresh capital.

“We did not issue any shares to the public, and we did not raise capital. This was a governance and business decision, not a capital-raising exercise,” he added.

According to him, the company’s existing capital base already satisfies regulatory requirements, adding that future fundraising would only be considered if expansion opportunities or regulatory changes create a genuine financing need.

“If you do not need capital, why raise it? If we need capital in future because opportunities require it, we will return to the market,” he said.

Fadahunsi cautioned companies against raising funds without clearly defined deployment plans, arguing that capital should only be sourced where it can generate sustainable value for shareholders.

Beyond macroeconomic risks, he identified integrity as one of the most significant challenges confronting Nigeria’s capital market, warning that weak corporate governance and poorly structured investment opportunities could undermine investor confidence and limit capital formation.

“Opportunity must speak the language of capital. Our responsibility is to ensure that opportunities that are not genuine do not gain access to investors’ capital,” he said.

He also called for improved financial literacy, noting that many businesses with viable ideas struggle to attract funding because they lack the governance structures and investment frameworks required by institutional investors.

On the company’s growth strategy, Fadahunsi said technology will be central to expanding its customer base from more than 5,000 clients to 100,000 by 2030.

“The simple answer is technology,” noting that digital investment platforms and electronic trading services would drive customer acquisition and improve service delivery.

He added that elevated interest rates have channelled significant investment into government securities, reducing the pool of capital available to businesses. According to him, easing inflation would eventually create room for lower interest rates, encouraging greater private sector investment and supporting broader economic growth.

AVA Capital was admitted to the Main Board of the Nigerian Exchange on July 31 through a listing by introduction, with five billion ordinary shares listed at N7.50 each. The transaction did not involve the issuance of new shares or the raising of fresh capital but subjects the company to the governance, disclosure and reporting requirements applicable to listed firms.

Adeyinka Adedeji, chairman of AVA Capital Plc, said the company’s listing represents the beginning of a new phase of responsibility rather than the culmination of its corporate journey.

According to him, “becoming a publicly quoted company commits the firm to higher standards of governance, accountability, transparency and long-term stewardship expected by shareholders and the investing public.”

Adedeji explained that the board’s role extends beyond overseeing financial performance to ensuring the institution remains resilient and well-governed amid changing economic conditions.

While acknowledging prevailing economic challenges, he said disciplined financial institutions still have an important role to play in deepening Nigeria’s capital market by strengthening investor confidence and upholding sound corporate governance.