NSE completes demutualisation process, becomes publicly listed company

The Nigerian Stock Exchange (NSE) has completed its demutualisation process after receiving all requisite approvals from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC).

The exchange announced the development in an update published on its website on Wednesday.

Demutualisation allows the bourse to sell its shares to investors and be listed on the exchange for trading.

This makes the NSE join the league of Johannesburg Stock Exchange and Nairobi Stock Exchange, which are already publicly listed companies.

This has resulted in the creation of a new non-operating holding company, the Nigerian Exchange Group plc (NGX Group) with Oscar Onyema serving as its group chief executive officer (GCEO).

NGX Group will have three operating subsidiaries; 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.

The national council of the NSE had announced that NGX Limited will be headed by Temi Popoola, while NGX REGCO will be led by Tinuade Awe.

The NSE will now proceed with its transition plan which will include the inauguration of boards, staff reallocation, operationalisation of business plans and budgets, technology systems transfer, and agreements among the entities.

Reacting to the development, Abimbola Ogunbanjo, NSE council president, said the demutualisation process is a positive step in improving Nigeria’s capital market.

“Successful demutualisation was one of my fundamental objectives when I assumed the presidency of The Exchange. The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly,” he said.

“We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the exchange and now look forward to the future public listing of its shares on NGX Limited.

“On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”

In his remarks, Onyema said the NGX Group will rise to become a premier exchange platform to aid business in Nigeria and grow the African economy.