The members of The Nigerian Stock Exchange (NSE or The Exchange) voted overwhelmingly at its 59th Annual General Meeting (AGM) – a meeting which is expected to be its last as a mutual entity – to support the listing of the Nigerian Exchange Group Plc (NGXG) on the Nigerian Exchange Limited (NGX) once the demutualization of the NSE is completed. Under the resolution passed by the AGM, subject to the receipt of requisite approvals of relevant regulatory authorities, following the conversion and re-registration of NGXG, 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.
The AGM was convened to consider ordinary and special business as outlined in the widely published notice of the meeting. Some of the other key resolutions unanimously approved at the AGM included:
- Audited Financial Statements of The Exchange for the year ended 31 December 2019, and the Reports of the National Council and the Auditors thereon.
- Following the conversion and re-registration of The Exchange as Nigerian Exchange Group Plc, the powers of the National Council of the Exchange will be devolved upon the Board of Directors of the Group
- The re-election of Otunba Abimbola Ogunbanjo as a Member of the National Council.
The 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.
Otunba Abimbola Ogunbanjo, President of the National Council of The Nigerian Stock Exchange said, “The National Council welcomes the strong endorsement by the members of The Exchange for our listing plans. On behalf of the Council we wish to thank 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.”
Oscar N. Onyema, Chief Executive Officer (CEO) of the NSE who is the Group CEO of NGXG Plc Designate for the new structure, said: “We would like to thank the membership of The Exchange for their overwhelming support of the listing plans. This marks the beginning of The Exchange’s transformation into a listed company with 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.”
You will recall that the NSE’s demutualization was unanimously approved by its members at its court ordered meeting held in March 2020. The demutualization of The Exchange is subject to the approval of the Securities and Exchange (SEC) of Nigeria, which is expected imminently.