By Nkiruka Nnorom
The dealing members of the Nigerian Stock Exchange (NSE) have approved the listing of the Nigerian Exchange Group Plc (NGXG) on the stock market once the demutualization of the NSE is completed.
They gave the approval yesterday at the 59th Annual General Meeting (AGM) of the Exchange.
Demutualisation is a process that changes a mutual or co-operative association into a public company by converting the interests of the members into shareholdings.
Under the resolution passed by the AGM and subject to the approvals of relevant regulatory authorities, the Group is authorized to undertake a listing by introduction of its shares on Nigerian Exchange Limited (NGX). Consequently, the NSE will no longer be wholly owned by its dealing and non-dealing members.
The vote clears 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. NGXG Plc will be expected to realize all the benefits of demutualization for its stakeholders and the capital market at large.
Speaking at the meeting, Otunba Abimbola Ogunbanjo, President of the National Council of the NSE, 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 listing and other steps.”
Mr. Oscar Onyema, CEO, NSE, who is the Group CEO of NGXG Plc Designate for the new structure, said: “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 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.”
Recall that the NSE’s demutualization was unanimously approved by its members at its court ordered meeting held in March 2020. The demutualization of The Exchange is subject to the approval of the Securities and Exchange (SEC) of Nigeria.