The Nigerian Stock Exchange (NSE) has urged brokers to merge or buy dormant licenses as it plans to change its name to Nigerian Exchange Group Plc and list its shares on the floor of its own market as part of efforts to complete demutualisation process in 2020.
Recall on August 29, 2018, President Muhammadu Buhari signed the demutualisation of the Nigerian Stock Exchange Bill into law to conform with prevalent international practice and standards.
The development was disclosed in an email by The Exchange where it stated that: “Going into 2020, the NSE is committed to completing the proposed demutualization.
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“(This) will further provide avenues to diversify our operations and evolve into a more competitive, robust and liberalized stock market.”
The exchange, currently has 252 dealing members, 166 listed equities and 154 bonds on its floor and will change its name to Nigerian Exchange Group Plc and then list its shares on its own market.
NSE in the email further urged stockbrokers to buy dormant licenses merge combine with other operators rather than apply for new ones as the bourse prepares to go public.
“Interested parties have been advised to purchase existing licenses.
“The exchange stopped issuing licenses as it progresses with its intention to demutualise.”
To complete the process, members of the exchange have scheduled to vote on March 3 to convert from a member-owned mutual organization into a public limited-liability company.
The NSE explained that the demutualization follows a 20% increase in value of the fixed-income segment of the Exchange in 2019, which helped to compensate for a decline in equity volumes and income.