NGX group reaches 34.9 billion naira in quotation rally
Investors welcomed the Nigerian Exchange Group (NGX Group) Plc to the Main Board of Nigerian Exchange (NGX) Limited with a rally as the holding group opened its ownership and shareholding to the investing public over the weekend.
NGX Group, the holding group of the Nigerian Demutualized Stock Exchange (NSE) and its former subsidiaries, listed all of its issued share capital this weekend of 1.964 billion ordinary shares of 50 kobo each on the stock exchange.
The IPO listing was carried out at a price of N16.15 per share, which implies an entry market capitalization of approximately N31.72 billion. The NGX group was listed in the newly established financial services and capital market infrastructure sector of the Exchange, under the symbol “NGXGROUP”.
Immediate trading records minutes after listing 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 daily change. maximum allowed of 10 percent at 17.75 N per share. This implied a post-listing market cap of N34.86 billion against a market cap of N31.72 billion.
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 of this year.
He assured that shareholders will benefit from the increased liquidity facilitated by the stock market listing.
âThis 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, âsaid declared Ogunbanjo.
Group Managing Director, Nigerian Exchange (NGX Group) Plc, Mr. Oscar Onyema, said that listing NGX Group on the country’s premier stock exchange, NGX, will enable institutional investors around the world as well as the Nigerian public to invest in the Nigerian Exchange Group.
âWith the strengthening of market dynamics, serving Africa’s largest economy, listing NGX Group allows us to expand into major 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, âOnyema mentioned.
Nigerian Exchange (NGX) Limited Chairman and CEO Mr. Temi Popoola said the list of milestones is particularly exciting as it will 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, âPopoola said.
The transformation of the defunct 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 required that all limited liability companies that had share capital be converted into limited liability companies by guarantee without share capital, so the constituting act of the Stock Exchange was duly amended and the NSE then became a legal person without shareholding structure.
The demutualization process was initiated in 2002 with the approval in principle of the conversion by the Board of the 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.