Nigerian Exchange Group Plc will on Wednesday 13th October, 2021, list its shares on The Nigerian Exchange. The Nigerian Exchange Limited is a subsidiary of Nigerian Exchange Group Plc.
The Group has 1,964,115,918 ordinary shares, and these will be listed by Introduction, after which Investors can buy and sell the shares of the Exchange Group on the floor of the Nigerian Exchange.
All regulatory requirements have been fulfilled and the Listing has received the approval of NGX Regulation Limited.
In the facts behind the listing event on Zoom, the Group Managing Director and Chief Executive Officer, Mr Oscar N. Onyema OON intimated that the price at which the shares will be listed will be made known in due course.
The proposed listing follows the completion of the demutualization and restructuring of the former Nigerian Stock Exchange and its related operations within the new NGX Group.
The Group will be listing under the ticker name NGXGROUP, and will be listed on the mainboard of the Exchange, with its registrar will be DataMax Registrars Limited.
Speaking on the listing, Mr. Oscar N. Onyema OON said:
“I am pleased to confirm that the Group intends to move ahead with its listing by Introduction on the Main Board of NGX Exchange.
Together with many other listed companies, NGX Group will take advantage of the strategic opportunities open to quoted companies in Nigeria. As a listed entity, The Group will have access to the widest range of new investors, including the growing pool of institutional investors. Demutualization has created many new possibilities for The Group and our listing is just one more step in our evolution.”
Otunba Abimbola Ogunbanjo, Group Chairman of NGX Group also stated:
“The Group expects the Listing to bring significant benefits to its business and its stakeholders. NGX Group will enhance its strategic flexibility by creating new financing opportunities and partnership possibilities, while diversifying its shareholder base. This milestone will open up The Group’s capital to new investors within the Nigerian investing public as well as international institutions thereby reinforcing NGX Group’s presence in international capital markets, and for its current long-term shareholders, it will create the possibility to realise value.”
In its 2019 and 2020 financial statements, the former Nigerian Stock Exchange Limited recorded a profit after tax of N2.3 billion and N1.9 billion respectively.
With 1,964,115,918 ordinary shares, the 2019 and 2020 profits after tax, theoretically puts the Group’s Earnings Per Share (EPS) at N1.17 and N0.97 respectively.
A review of the Groups H1 2021 (Half-year) finances showed the below;
- Revenue: N2.34 billion
- Total Operating income: N2.72 billion
- EBITDA: N321.16 million
- Net Income: N761.29 million
- Share of Investees’ Profit: N699.11 million
- Total Assets: N35.79 billion
- Total Equity: N32.02 billion
From the above ratios, it can be computed that the Group returned a Net income Margin of 28%, a 2% Return on Equity and a 2% Return on Assets.
50% of the Groups revenue in H1 2021 came from Transaction fees, 19% came from Investment income, 13% from Listing fees, 4% from Other Fees, 2% from Rental Income and 12% from Other Income.
The Nigerian Exchange Group is a Multi-exchange business with diversified revenues. Its subsidiaries and Investments include the below;
- 100% ownership of the NGX Exchange Limited
- 100% ownership of NGX Regulation Limited
- 100% ownership of NGX Real Estate Limited
- 29.2% stake in Central Securities Clearing System (CSCS)
- 27.7% stake in NG Clearing
- 10% in NASD
- 6.5% in FMDQ
- 7.5% in Requid
- 7.5% in Teslys Network Services Limited
- 15% in Eastwall Solutions Limited
Analysts at Investogist hold no opinion on this listing, an opinion will be formed when the listing price is made available to the investing public.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur