Nigerian Exchange Group Plc will list 1,964,115,918 shares by introduction on the Nigerian Exchange Limited (NGX), following receipt of regulatory go-ahead from NGX Regulation Limited.
Listing by introduction enables a company to list shares already in issuance without the need to raise new funds or issue new shares as in the case of an initial public offering.
It will trade under the ticker NGXGROUP at an indicative price of N17.17 per share at 50 kobo each.
The NGX Group is the holding company of the NGX Limited, NGX Regulation Limited (the regulatory arm) as well as NGX Real Estate, and owns controlling stakes in the three subsidiaries, while overseeing management resolutions without direct involvement in their day-to-day running.
Temi Popoola, NGX chief executive officer, said at a virtual Facts Behind the Listing session on Monday the demutualisation of the exchange would enable the group to provide liquidity for members and enable the capital market ecosystem to grow at the same rate with the economy.
“This move will see NGX Group evolve in a fashion similar to other demutualised exchanges, which have experienced significant periods of growth following their demutualisation.”
Oscar Onyema, the group’s managing director/CEO, noted the NGX Group has its key strategic target on optimising both organic and inorganic opportunities for business growth across categories towards strengthening global competitiveness.
“As a listed entity, NGX Group will have access to the widest range of new investors, including the growing pool of institutional investors, and this is just one more step in our evolution.
“Having successfully demutualised, we will actively forge ahead with our aspiration to become Africa’s leading integrated capital market infrastructure group.”
Listing its shares will enable the NGX Group uphold global best practices in foreign exchanges such as the Intercontinental Exchange listed on the New York Stock Exchange owned by it and the Japan Exchange Group listed on the Tokyo Stock Exchange also owned by it.
Chapel Hill Denham Securities Limited and RMB Nigeria Stockbrokers Limited are the stockbrokers to the listing, while Chapel Hill Denham Advisory Limited and Rand Merchant Bank Nigeria Limited are financial advisers.