Members of The Nigerian Stock Exchange (NSE), on Wednesday, held its annual general meeting, its last as a mutual entity, supporting the listing of the emergent Nigerian Exchange Group Plc (NGXG) on the Nigerian Exchange Limited (NGX) once the demutualization exercise is completed.
The meeting approved, subject to the receipt of requisite approvals of relevant regulatory authorities, the conversion and re-registration of NGXG, while 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.
Following the conversion and re-registration of The Exchange as Nigerian Exchange Group Plc, according to a statement issued at the end of the meeting, the powers of the National Council of the Exchange will be devolved upon the board of directors of the Group.
“Today’s vote clears the way for the listing of NGXG and for a new structure that will enable The Exchange to realize 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,” the statement added.
The statement quoted Otunba Abimbola Ogunbanjo, President of the National Council of The NSE as welcoming the strong endorsement by the members of The Exchange for the council’s listing plans.
He expressed the council’s appreciation to “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.”
Also commenting, Oscar Onyema, Chief Executive of the NSE and Group CEO-Designate of NGXG Plc under the new structure, appreciated the overwhelming support for the listing plans, which he said “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. 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.”
Recall that the NSE’s demutualization was unanimously approved by its members at a court-ordered meeting in March, and subject to the anticipated approval of the Securities and Exchange (SEC) of Nigeria.
Photo caption: From left: Oscar Onyema, Chief Executive, The Nigerian Stock Exchange (NSE); Otunba Abimbola Ogunbanjo, President, National Council, NSE; and Ms. Mojisola Adeola, Council Secretary, NSE, at the 59th Annual General Meeting of Members of The Nigerian Stock Exchange on Wednesday, November 18, 2020.