In just two days, the NGX group rallies a gain of 20%
The newly listed Nigerian Exchange Group (NGX Group) Plc remained the heart of the stock market, increasing nearly the maximum allowable daily price change of 10 percent for the first two trading days.
The NGX Group share price rose 9.86 percent or N 1.75 from its opening price of N 17.75 to close at N 19.50 per share, the highest percentage and the gain in value per share on Monday.
Under the rules of the stock market, the limit on the variation of stock prices, up or down, is set at 10 percent per day.
NGX Group, the holding group of the Nigerian Stock Exchange (NSE) and its former subsidiaries, listed all of its issued share capital of 1.964 billion common shares of 50 kobo each on the Nigerian Exchange (NGX) Limited on Friday, October 15, 2021..
The IPO listing was carried out at a price of N16.15 per share, implying an entry market capitalization of approximately N31.72 billion. The NGX group was listed in the new financial services and capital market infrastructure sector of the Exchange, under the symbol “NGXGROUP”.
Immediate trading records minutes after the listing on Friday showed a major rally for the new stock as investors closed 31 trades for 3.56 million common shares, pushing the share price up by almost the change. maximum daily allowed 10 percent at 17.75 N. share. This implied a post-listing market capitalization of N34.86 billion against a market capitalization of N31.72 billion.
Meanwhile, the overall stock market situation yesterday was negative as the overall market value fell by 153 billion naira. The aggregate market value of all shares listed on NGX fell from its opening value of 21.625 billion Naira to close at 21.472 billion Naira. The All Share Index (ASI) – a common value-based index that tracks all stock prices on NGX, fell from its opening index of 41,438.15 points to close at 41,144.67 points.
Group chairman, Nigerian Exchange Group Plc, Otunba Abimbola Ogunbanjo, said the listing was a result of the company having met the listing requirements of the Exchange and obtained the relevant regulatory approvals.
He said the listing was another milestone in the group’s 2018-2021 corporate strategy, noting that the group’s shareholder base had more than doubled since its demutualization in March 2021.
He assured that shareholders will benefit from the increased liquidity facilitated by the stock market listing.
“This listing will also allow a much wider universe of potential investors and market players to share our growth journey. As a Board of Directors, we adhere to the letter and spirit of the listing requirements and are committed to transparent disclosure, proactive stakeholder engagement and exemplary corporate governance, ”said declared Ogunbanjo.
Group Managing Director, NGX Group Plc, Mr. Oscar Onyema said that listing NGX Group on the country’s premier stock exchange, NGX, will allow institutional investors around the world as well as the public to invest in the Nigerian Exchange Group.
“With the strengthening of market dynamics, serving Africa’s largest economy, listing NGX Group allows us to expand into key verticals of capital market infrastructure and look beyond borders. of Nigeria as we realize our growth plans to become the leading capital market infrastructure group in Africa, ”Onyema mentioned.
Nigerian Exchange (NGX) Limited Chairman and CEO Mr. Temi Popoola said the list of milestones was particularly exciting as it would position NGX Group to provide liquidity to members while boosting the capital market ecosystem to grow at the same rate as the economy.
“Today, we reiterate our commitment to be a trusted partner of the NGX Group and other listed companies as we continue to build a platform that enables our listed companies, investors and other stakeholders to maximize value. in our market, ”Popoola said.
The transformation of the late NSE from a non-profit mutual with participation limited by guarantee into a for-profit public limited 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 regulatory company which took over the self-regulatory functions of the defunct NSE; and NGX Real Estate Limited (NGX RELCO), the real estate company that has taken possession of real estate and other assets, including the iconic Lagos Stock Exchange building.
While the NSE was originally incorporated under the Companies Ordinance 1958 on September 15, 1960 as a private company limited by guarantee with share capital, it was re-registered as a limited liability company by guarantee without share capital in 1990 with the enactment of the Companies & Allied Matters Act, Cap C20, 2004, (CAMA), which replaced the Companies Ordinance (1958). CAMA had demanded that all limited liability companies that had share capital be converted into companies limited by guarantee without share capital. shareholding structure.
The demutualization process was initiated in 2002 with the approval in principle of the conversion by the Board of the Stock Exchange. The members of the Bourse in March 2017 passed crucial resolutions authorizing the board and management to continue the process leading to the demutualization of the Bourse.