The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema revealed that work is being done to ensure the public listing of the Nigerian bourse is completed before the end of 2019.
Onyema, who made this disclosure while granting interviews on the sidelines of the public listing of MTN Nigeria, said “we are shooting for this year for the demutualisation to be completed”.
The Nigerian Stock Exchange’s demutualisation process has been ongoing for some years. In 2015, the Securities and Exchange Commission (SEC) issued the exposure draft rules on the demutualisation of exchanges in Nigeria. The Nigerian Stock Exchange also appointed financial advisers to advise it on the execution of the project.
Back in 2018, Nigeria’s lower legislative house, the House of Representatives passed a bill amending the laws establishing the NSE. This followed an earlier signing of a similar bill by the Senate, all part of the processes leading to the demutualisation of the Nigerian bourse.
In June 2018, Onyema revealed that the demutualisation process has reached the final stage of implementation, following its first and second readings as well as a public hearing at the National Assembly. He also stated that they were waiting for the demutualisation bill to be signed into law.
This year, Onyema said the bill has been signed into law by the Presidency. He noted that it was left for the NSE Council and all other stakeholders to decide on a take off date. The takeoff date is currently delaying the completion of the process.
Onyema said the eventual completion of the demutualisation process would enable the Nigerian bourse to fully modernise its processes. He also said the completion of the demutualisation process would enable the NSE to “give a very clear signal to the market on how we intend to proceed with that liquidity”.
He said “the decision hasn’t been made yet whether that capital rising will be an IPO or some other type of other forms of capital raising”.