Demutualisation: NSE’s Shares To Go Live On Stock Market

SAN FRANCISCO, November 20, (THEWILL) –
Members of the Nigerian Stock Exchange (NSE) have given approval for the listing of the Nigerian Exchange Group Plc (NGXG) on the exchange market once the demutualisation process is completed.

Following the conversion and re-registration of NGXG, the group is authorized to undertake a listing by the introduction of its shares on the stock exchange. Consequently, the NSE will no longer be wholly owned by its dealing and non-dealing members.

This was approved at the 59th Annual General Meeting (AGM) and under the resolution passed subject to the receipt of requisite approvals of relevant regulatory authorities.

THEWILL recalls that members, had last March, unanimously approved the NSE’s demutualisation at its court-ordered meeting. The demutualization of the exchange is subject to the approval of the Securities and Exchange (SEC) of Nigeria.

Commenting on the resolution, the Chief Executive Officer of the NSE, Oscar Onyema, said the approval by members has cleared the way for the listing of NGXG and for a new structure that will enable the exchange to realize its vision of becoming Africa’s leading exchange hub.

“We would like to thank the membership of the exchange for their overwhelming support of the listing plans. This marks the beginning of the exchange’s transformation into a listed company with the flexibility to raise additional equity and/ or debt capital.

“It is our aim that under this new structure, the Nigerian capital markets will be able to play a role that is commensurate with Nigeria’s status as Africa’s biggest economy.

“We believe we can become a financial hub for Africa and with the backing of our stakeholders and their continued use of our services this objective can become a reality,” he said.

On his part, President of the National Council of the NSE, Abimbola Ogunbanjo, said: “The National Council welcomes the strong endorsement by the members of the exchange for our listing plans. On behalf of the Council, we wish to thank the exchange’s management for their outstanding work in the previous year when they have faced unprecedented challenges such as the Coronavirus pandemic.

“It is a tribute to their efforts that The Exchange has continued to work effectively and at the same time has made significant progress in pursuing its strategic development through the listing and other steps,” he said.