Nigerian Stock Exchange now a public company

11 Mar Nigerian Stock Exchange now a public company

The Nigerian Stock Exchange (NSE) has finally completed its demutualisation process that spanned 11 years and it is now to operate as a public company limited by shares.

The shift makes the NSE the 57th exchange in the world to embrace such a transformation since Sweden’s Stockholm Stock Exchange piloted the move in 1993.

With approvals received from Securities and Exchange Commission (SEC), and Corporate Affairs Commission (CAC), the exchange is at liberty to list its own shares and trade them on the bourse like every other quoted firms.

“Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created,” the NSE said Wednesday in a statement.

“The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.”

Half a century old, Lagos-based NSE has lived off members’ contributions all its life right from inception in 1960, allowing the members who own the exchange to run it at the same time.

But the new corporate structure will put in place a board of directors to watch over its affairs.

The Demutualisation of the Nigerian Stock Exchange Bill was passed separately by the Senate and the House of Representatives in December 2017 and February 2018.

“At the Nigerian Stock Exchange, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy,” said Oscar Onyema, group chief executive officer of the NGX Group Plc.

“We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”