Although the shares are still tightly owned by former members, there is a strong appetite on the part of non-member retail investors and institutional investors to own shares of the exchange.
The Nigerian Exchange Group (NGX) has achieved its prolonged ambition to be listed on the exchange it operates. At the end of its first day of trading on October 15, 2021, the market capitalization of the brokerage firm reached 34.86 billion naira ($ 85 million) from the sale of 1.96 billion units. of shares which started trading at 17.75 naira ($ 0.04).
“NGX Group’s listing allows us to expand into key capital market infrastructure verticals and look beyond Nigeria’s borders as we deliver on our growth plans to become the premier infrastructure group in capital markets in Africa, ”said Oscar Onyema, CEO of NGX Group, during a listing event. .
While the shares are still tightly owned by former members, particularly the trading member institutions, each of which has received over six million demutualized NGX share units, there is a strong appetite from retail investors. non-member and institutional investors to hold shares of the exchange. .
The decision of the stock market operator to demutualize “is positive for the agility of the NGX and its ability to reinvent and reposition itself effectively for global competitiveness”, according to Yadinma Onwu, Executive Vice President of Funds Matrix & Assets Management .
“It’s good for stronger governance and market development and, of course, [to] freeing exchange from the shackles associated with a jointly owned entity, where decisions had to be made in the best interests of the members at large, even when this undermines market development, ”he said. “With the completion of this process, the stock exchange should be more efficient in managing its core activities, although it can also explore new opportunities to broaden the scope of the Group’s business. “
Chinenyem Anyanwu, CEO of Dependable Securities, notes that “members are now shareholders, who may seek to own the shares or trade them with other interested investors – who do not necessarily have to be participants in the exchange to hold their shares. stocks – as a fair investment [like] any other legal person listed on the stock exchange.
Anyanwu also finds it exciting that NGX is now reporting profits to its shareholders, “unlike [the] hitherto practiced when it operated as a non-profit entity, with an annual surplus or deficit, as the case may be.