NGX Group Hits N34.9bn In Listing Rally
Investors welcomed the Nigerian Exchange Group (NGX Group) Plc to the main board of the Nigerian Exchange (NGX) Limited with a rally as the holding group opened up its ownership and shareholding to the investing public at the weekend.
NGX Group, the holding group for the demutualised Nigerian Stock Exchange (NSE) and its former subsidiaries, at the weekend listed its entire issued share capital of 1.964 billion ordinary shares of 50 kobo each on the stock exchange.
The listing by introduction was done at a price of N16.15 per share implying entry market capitalisation of about N31.72 billion. NGX Group was listed in the newly created financial services and capital market infrastructure sector of the Exchange, with the ticker “NGXGROUP”.
Immediate trading records within minutes of listing showed a major rally for the new stock as investors struck 31 deals for 3.56 million ordinary shares, pushing the share price up by almost the maximum daily allowable change of 10 per cent to N17.75 per share. This implied a post-listing market capitalisation of N34.86 billion as against listing market capitalisation of N31.72 billion.
Group Chairman, Nigerian Exchange Group Plc, Otunba Abimbola Ogunbanjo said the listing was sequel to the company having successfully meeting listing requirements of the Exchange and obtaining relevant regulatory approvals.
He said the listing was another milestone under the group’s 2018 – 2021 corporate strategy noting that the group’s shareholder base has more than doubled since its demutualisation in March, this year.
He assured that shareholders will benefit from the enhanced liquidity that listing on the Exchange will facilitate.
“This listing will also enable a much wider universe of potential investors and market participants to share in our growth journey. As a board, we embrace the letter and spirit of the listing requirements and we are committed to transparent disclosure, proactive stakeholder engagement and exemplary corporate governance,” Ogunbanjo said.
Group Managing Director, Nigerian Exchange (NGX Group) Plc, Mr. Oscar Onyema said the listing of NGX Group on the nation’s premier Exchange, NGX, will enable institutional investors globally as well as the Nigerian public to invest in Nigerian Exchange Group.
“With strengthening market dynamics, serving the largest economy in Africa, NGX Group’s listing allows us to expand in key capital market infrastructure verticals and look beyond Nigeria’s borders, as we deliver on our growth plans to become Africa’s leading capital market infrastructure group,” Onyema said.
Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoola said the milestone listing was particularly exciting as it would position NGX Group to provide liquidity to members while stimulating the capital market ecosystem to grow at the same pace as the economy.
“Today, we reiterate our commitment to being a trusted partner to NGX Group and other listed companies as we continue to build a platform that allows our listed companies, investors and other stakeholders to maximise value in our market,” Popoola said.
The conversion of the defunct NSE from a not-for-profit, member-owned mutual organisation limited by guarantee to a profit-making, public limited liability company with shareholders, led to the creation of a holding company NGX Group with three subsidiaries namely: Nigerian Exchange Limited (NGX Limited), the operating exchange, which took over the listing and trading function of the defunct NSE; NGX Regulation Limited (NGX REGCO), the independent regulation company which took over the self regulatory functions of the defunct NSE; and NGX Real Estate Limited (NGX RELCO), the real estate company that took ownership of real estate and other assets, including the iconic Stock Exchange building in Lagos.
While the NSE was initially incorporated under the Companies Ordinance of 1958 on September 15, 1960 as a private company limited by guarantee with a share capital, it was re-registered as a company limited by guarantee without a share capital in 1990 upon the enactment of the Companies & Allied Matters Act, Cap C20, 2004, (CAMA), which replaced the Companies Ordinance (1958). CAMA had required all companies limited by guarantee that had a share capital to be converted to companies limited by guarantee without share capital, thus the Exchange’s Memorandum of Association was duly altered and the NSE then became a not-for-profit corporate legal entity without a shareholding structure.
The demutualisation process was launched in 2002 with the approval-in-principle of the conversion by the council of the Exchange. Members of the Exchange in March 2017 passed crucial resolutions that authorised the council and management to proceed with the process leading up to the demutualisation of the Exchange.
