Tuesday, October12, 2021 / 11:45 AM / by NGX/ Header Image Credit: LinkedIn;NGX

In line with its commitment to uphold bestglobal practices, Nigerian Exchange Group Plc's (NGX Group or The Group)leveraged the Facts Behind the Listing of Nigerian Exchange Limited (NGX orExchange) to engage stakeholders on Monday, 11 October 2021 ahead of theListing by Introduction of its shares on NGX.

Theproposed listing comes on the back of the successful completion of thedemutualisation and restructuring of the Nigerian Stock Exchange (the formername of NGX Group) and its operations. Furthermore, inline with the practice of demutualized exchanges, NGX Group will be listing onthe operating Exchange to support liquidity and enhance transparency. Theproposed listing of the shares of NGX Group is expected to occur following thefulfillment of all regulatory requirements and the approval of NGX RegulationLimited. A total of 1,964,115,918 shares are expected to be admitted to tradingand the shares will trade under the ticker NGXGROUP.

Speakingduring the Facts Behind the Listing, the Chief Executive Officer, NGX, Mr. TemiPopoola, CFA, noted that, "I ampleased to congratulate the Board, Managementand staff of NGX Group for the successful completion of the demutualization andrestructuring of the Nigerian Stock Exchange, and subsequent listing on theMain Board of NGX. Demutualization strategically places NGX Group in a positionto provide liquidity to members while stimulating the capital market ecosystemto grow at the same pace as the economy. Furthermore, this move will see NGXGroup evolve in a fashion similar to other demutualized exchanges, which haveexperienced significant periods of growth following their demutualization."

On hispart, the Group Managing Director/Chief Executive Officer, NGX Group, Mr. OscarN. Onyema, OON, during his presentation highlighted that, "NGX Grouphas its key strategic focus geared at leveraging organic and inorganic growthopportunities for expansion of its business across relevant business categoriesin order to increase global competitiveness. As alisted entity, NGX Group will have access to the widest range of new investors,including the growing pool of institutional investors, and this is just onemore step in our evolution. Having successfully demutualised, we willactively forge ahead with our aspiration to become Africa's leading integratedcapital market infrastructure group."

NGX Group continues to build onits record of accomplishment over time, which embodies best practices, leadingby example in terms of disclosures to, and relationships with the market.Beyond maintaining due process, the governance framework of NGX Group isconsistent with leading corporate governancepractices and complies with all laws and codes applicable to its business. TheBoard of NGX Group consists of 11 members, four of whom are independent.

It hasbeen reported that the GMD/CEO of NGX Group, Mr. Onyema, also serves asNon-Executive Director of NGX. This Board membership seems topreserve collective knowledge and institutional memory, as well as retainstakeholder confidence and maintain market stability. Our research has shownthat this approach is also being used by the holding companies of leadinginternational exchanges, including the Intercontinental Exchange (popularlyknown as ICE) which is listed on the New York Stock Exchange (NYSE) which itowns, and the Japan Exchange Group (popularly known as JPX) which is listed onthe Tokyo Stock Exchange (TSE) which it owns.

NYSEis the largest stock exchange in the world by market capitalization, whilstTSE is the third largest stock exchange in the world by theaggregate market capitalization of its listed companies, and is the largest inAsia. It would therefore seem that NGX Group stands in good company and hasbenchmarked in line with leading integrated capital market infrastructuregroups globally, and leading exchanges in the world.

Speaking to the prospects NGXGroup provides to investors, the Group Chief Financial Officer, NGX Group, Mr.Cyril Eigbobo presented the financials of the organisation in itspre-demutualised state. "NGX Group boasts a diversified revenue base with significant contributions fromtransaction fees, listing fees, interest income from investment in treasurybills, fixed deposit etc. In addition to contributions from operatingsubsidiaries, consolidated Group net income includes share of income in equityinvestees held by the Holdco, NGX Group Plc. Evidently, The Group has a large,diversified and growing asset base which includes long and short-term risk-freesecurities."

Group Chairman, NGX Group, Otunba AbimbolaOgunbanjo had also earlier stated, "The Group expects the Listing to bringsignificant benefits to its business and its stakeholders. NGX Group willenhance its strategic flexibility by creating new financing opportunities andpartnership possibilities, while diversifying its shareholder base. Thismilestone will open up The Group's capital to new investors within the Nigerianinvesting public as well as international institutions thereby reinforcing NGXGroup's presence in international capital markets, and for its currentlong-term shareholders, it will create the possibility to realise value."

The stockbrokers to the listing of NGX Groupare Chapel Hill Denham Securities Limited and RMB Nigeria Stockbrokers Limited.The Financial Advisers to NGX Group are Chapel Hill Denham Advisory Limited andRand Merchant Bank Nigeria Limited.

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