Goddy Egene
NASD Plc, platform providing over-the-counter (OTC) market for public unlisted securities has admitted the shares of the demutualised Nigerian Stock Exchange holding company, called Nigerian Exchange Plc (NGX) to the OTC market.
Following the demutualisation, NGX recently distributed 1,964,115,918 ordinary shares of 50 kobo each to over 200 dealing members and additional ordinary members, who have now become shareholders.
And the Nigeria’s capital market rules require all public securities to be registered with the Securities and Exchange Commission (SEC) and could be traded only on platforms registered by the commission.
According to the Managing Director of NASD Plc, Mr. Bola Ajomale, in line with regulatory rules and in support of enabling liquidity in the market, NASD OTC provides the perfect landing platform for the 60-year-old company that has spent approximately 10 years in its demutualisation exercise.
“NASD provides an orderly, lightly regulated and transparent environment with structure and experienced traders.
“The market delivers on the basis of easy onboarding and withdrawal of securities into and out-of-the market space and the code for NGX – SDNGXGROUP was created at the depository within a 48-hour period.
“We are pleased to be able to do our part in deepening the capital market by expressing our mandate of creating liquidity transparently,” Ajomale said.
The shares closed at N23.67 per share last Friday.
The stock exchange last March announced the completion of its demutulisation in March following final approvals from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC).
Consequently, the NGX Group Plc was created with three operating subsidiaries.
Chairman of NGX Group, Otunba Abimbola Ogunbanjo, said they were elated that the milestone had been achieved as they celebrate the 60th anniversary of the commencement of trading at the exchange.
On his part, the Group Chief Executive Officer of NGX Group, Mr. Oscar Onyema, said they had a vision that the new group would become the premier exchange hub for Nigerian businesses and for the African economy.
“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,” he said.
According to the exchange, there would be Transition Plan (TP)that would take the group and its subsidiaries through to full operational launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants.
“The TP will also see the inauguration of boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities.
“Upon operational launch, the group’s new brands, including a new website, will be unveiled and the group will be in position to execute on its strategic vision.
“Stakeholders, including our new valued shareholders will benefit from the group’s enhanced corporate governance framework, access to capital to fund strategic developments and a more globally competitive exchange,” it stated further.
