Nigerian Stock Exchange Group&#8217;s Investment in subsidiaries

The Nigerian Exchange Group Plc (NGX: NGXGROUP), formerly known as the Nigerian Stock Exchange had in the preceding week reported a profit of N148.30 million for the first quarter period ended 31st March, 2022.

It’s Statement of Comprehensive Income showed that it booked a revenue of N1.67 billion with over 60% of those coming from Transaction fees & Listing fees earned by its subsidiary; the Nigerian Exchange Limited.

The Nigerian Exchange Group Plc (“NGX Group”) formerly known as the Nigerian Stock Exchange, was incorporated in Nigeria as a private Exchange Limited by shares on 15 September 1960 as Lagos Stock Exchange and its name was changed to The Nigerian Stock Exchange on 15 December 1977.

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The Exchange was re-incorporated as a Exchange Limited by Guarantee on 18 December 1990. In 2021, the Nigerian Stock Exchange was fully demutualised changing from a member-owned not-for-profit entity into a shareholder-owned, profit making entity. This gave rise to a new structure – Nigerian Exchange Group Plc (NGX Group) with subsidiaries.

Below is the list of all subsidiaries the Nigerian Stock Exchange Group invested in and the value of those investments.

NSE Consult Limited (N1.25 million): The NGX Group Plc has a 99.8% holding in NSE Consult Limited. NSE Consult Limited was incorporated in Nigeria on 19 May 2004 and commenced business on 15 April 2005. Its principal objective is to carry on business as consultants, financial advisers and analysts, and to carry on business as the strategic investment arm/subsidiary of the Nigerian Stock Exchange. The principal place of business of the Company is Nigeria.
Coral Properties Limited (N72.00 million): The NGX Group Plc has a 100% holding in Coral Properties Limited. Coral Properties Limited was incorporated in Nigeria as a private limited liability company on 20 May 1993 and became a public Company on 29 August 1995. The principal activity of the Company is real estate development and sales. The Company’s place of incorporation is also the Company’s place of principal place of business.
NGX Real Estate Limited (N1.63 billion): The NGX Group Plc has a 100% holding in NGX Real Estate Limited. NGX Real Estate Limited was incorporated as a limited liability Company on 29 June 1974 as Naira Properties Limited and its name was changed to NGX Real Estate Limited on 13 October 2019 . The company’s main activities are property letting and investment. The NGX Group Plc acquired 40% equity interest in NGX Real Estate Limited in February 1986. The company became a wholly owned subsidiary of the NGX Group Plc in 2005 when the NGX Group Plc acquired the balance of 60% equity interest in the company, previously held by the Daily Times Nigeria. The Company’s place of incorporation is also the Company’s principal place of business.
NSE Nominees Limited (N500,000): The NGX Group Plc has a 83.3% holding in NSE Nominees Limited. NSE Nominees Limited was incorporated on 22 May 2007 with the principal objective of opening and operating a nominee account for the purpose of buying back shares for the benefit of investors who suffered losses through an unauthorized sale of their shares within the Nigerian Capital Market.
Nigerian Exchange Limited (N1.45 billion): The NGX Group Plc has a 99.9% holding in Nigerian Exchange Limited. Nigerian Exchange Limited is a Company domiciled and incorporated in Nigeria. The Company was incorporated as a limited liability Company on 22 July 2019. The principal activities are to provide facilities to the public for the purchase and sale of securities, a platform for the listing of securities and sale of securities to the public, market data and indices for sale to the public.
NGX Regulation Limited (N643.43 million): The NGX Group Plc has a 99.9% holding in NGX Regulation Limited. NGX Regulation Limited is a Company domiciled and incorporated in Nigeria. The Company was incorporated as a limited liability Company on 22 July 2019. The company will focus on carrying out the regulatory functions as agreed with Nigerian Exchange Limited. NGX Regulation earns a 5.0% mark-up on its expenses.

The statement of financial position of NGXGROUP as at 31 March 2022 shows that the group has total assets worth N63.77 billion, funded by N29.51 billion of liabilities and N34.26 billion from Shareholders’ fund.