The Nigerian Stock Exchange (NSE) has scaled the hurdle of obtaining members’ consent to list its own shares, bringing it close to consummating a corporate transformation process that will see the organisation assume a new identity as Nigerian Exchange Group Plc (NGXG).
The resolution came through voting at the 59th annual general meeting of the NSE on Wednesday during which its audited financial statements for the year ended 31st December 2020 and the reports of the national council and the auditors were endorsed.
It will enable the institution convert from an institution, owned by dealing and non-dealing members, to a publicly quoted company, where private individuals or institutional investors can own shares like every other firms on the bourse after the completion of the current demutualisation process.
Once the approvals of regulatory authorities are in place, and the NGXG is converted and re-registered, the group will proceed to list its shares by introduction.
The exchange itself will then cease to be known by the name “NSE” but by that of the surviving entity to be called the Nigerian Exchange Limited (NGX).
“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,” said Abimbola Ogunbanjo, president of the National Council of the Nigerian Stock Exchange.
“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.”
The powers of the National Council of the Exchange will be devolved to the group’s board of directors at the end of the transformation and re-registration phase.
The NSE’s chief executive, Oscar Onyema, said “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.”
The NSE authority will now look to get the nod of the Security and Exchange Commission for the process to be completed.