NGX Group to list 1.96 billion shares by introduction

The Nigerian Exchange Group Plc says it will list 1,964,115,918 shares by introduction on the main board of the Nigerian Exchange (NGX) Limited.

The group said it had received regulatory approval from NGX Regulation Limited to trade under the ticker NGXGROUP to list by introduction at 50 kobo each at an indicative price of N17.17 per share.

Listing by introduction implies the company is not raising capital (through IPO) immediately. It has also satisfied all regulatory requirements for listing.

Speaking at the virtual Facts Behind the Listing presentation of NGX Group Plc on Monday in Lagos, Temi Popoola, chief executive officer of NGX Limited, said the move would provide liquidity to members while stimulating the capital market ecosystem.

“I am pleased to congratulate the Board, Management and staff of NGX Group for the successful completion of the demutualisation and restructuring of the Nigerian Stock Exchange, and subsequent listing on the Main Board of NGX,” he said.

“Demutualisation strategically places NGX Group in a position to provide liquidity to members while stimulating the capital market ecosystem to grow at the same pace as the economy. Furthermore, 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, group managing director/chief executive officer, NGX Group, during his presentation highlighted that “NGX Group has its key strategic focus geared at leveraging organic and inorganic growth opportunities for expansion of its business across relevant business categories in order to increase 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.”

NGX Group is listing after the demutualisation and restructuring of the Nigerian Stock Exchange (the former name of NGX Group) and its operations.

TheCable understands that the NGX Group is listing to boost liquidity, enhance corporate framework governance as well as deliver capital growth for shareholders.

The listing is said to be in line with holding companies of leading international exchanges. The Intercontinental Exchange (popularly known as ICE) is listed on the New York Stock Exchange (NYSE), which it owns, and the Japan Exchange Group (popularly known as JPX), is listed on the Tokyo Stock Exchange (TSE), which it owns.

The stockbrokers to the listing of NGX Group are Chapel Hill Denham Securities Limited and RMB Nigeria Stockbrokers Limited. Chapel Hill Denham Advisory Limited and Rand Merchant Bank Nigeria Limited are financial advisers.

No data has been for the planned listing.