World Markets

Nigerian exchange to seek approval next month to list shares

Credit: REUTERS/AFOLABI SOTUNDE

The Nigerian stock exchange said on Wednesday it will seek approval next month to list shares on the stock market.

ABUJA, Oct 28 (Reuters) - The Nigerian stock exchange said on Wednesday it will seek approval next month to list shares on the stock market.

The exchange began changing its ownership structure from a mutual company of stockbrokers in 2017, adding new shareholders in a process known as "demutualisation".

It has re-registered as a profit-making entity owned by shareholders, called the Nigerian Exchange Group Plc, with a share capital of 1.25 billion naira. It had been operating as a not-for-profit entity.

The listing gives existing shareholders the chance to trade their shares. The Nigerian Exchange Group Plc will not be raising new cash from the listing.

The exchange plans to seek approval from members on Nov. 18 to list 2 billion ordinary shares of 0.50 naira.

It has yet to set a listing price for the new entity, in which stockbrokers will hold 78% of the shares. Ordinary members will own the balance. Seven directors and five independent directors have been appointed.

The bourse, the second biggest in sub-Saharan Africa and one of the main entry points to invest on the continent, has around 200 listed companies, all included in its benchmark share index.

(Reporting by Chijioke Ohuocha Editing by Mark Heinrich)

((chijioke.ohuocha@thomsonreuters.com; +234 703 4180 621; Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net))

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