The process of demutualization of the Nigerian Stock Exchange (NSE) which started many years ago is moving to a logical conclusion following massive support it gained at the 59th Annual General Meeting (AGM) of the Lagos bourse.
Members of the Exchange have voted overwhelmingly today at the AGM, which is expected to be its last as a mutual entity, to support the listing of the Nigerian Exchange Group Plc (NGXG) on the Nigerian Exchange Limited (NGX) once the demutualization of the NSE is completed.
Under the resolution passed by the AGM, subject to the receipt of requisite approvals of relevant regulatory authorities, following the conversion and re-registration of NGXG, the Group is authorized to undertake a listing by introduction of its shares on NGX.
Consequently, the NSE will no longer be wholly owned by its dealing and non-dealing members.
Importantly, the vote clears the way for the listing of NGXG and for a new structure that will enable the Exchange to realise 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.
Otunba Abimbola Ogunbanjo, president of the National Council of the Nigerian Stock Exchange, 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”.
Oscar Onyema, chief executive officer of the NSE, who is the GCEO 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.
He noted that 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.”
You will recall that the NSE’s demutualization was unanimously approved by its members at its court ordered meeting held in March 2020.
The Demutualisation of The Exchange is subject to the approval of the Securities and Exchange Commission, which is expected imminently.