• Friday, July 12, 2024
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EXPLAINER: What NSE’s rebranding as Nigerian Exchange Group means

Bears seen not ready to relinquish position on Nigerian Bourse

Following the successful demutualisation of the Nigerian Stock Exchange (NSE), changes have been made to the nomenclature and brand identity of the now defunct NSE.

The exchange, which has become a non-operating holding company, is now called Nigerian Exchange Group Plc (NGX Group) under the leadership of Otunba Abimbola Ogunbanjo as group chairman and Oscar N. Onyema as group managing director/group chief executive officer.

Under this arrangement, the Nigerian Exchange Group has three operating subsidiaries, namely, Nigerian Exchange Limited (NGX) which is the operating exchange, the NGX Regulation Limited (NGX REGCO), the independent securities regulator, and NGX Real Estate Limited (NGX RELCO), the real estate company.

The Nigerian Exchange Limited has Abubakar Balarabe Mahmoud as chairman and Temi Popoola as managing director/chief executive officer.

Catherine Echeozo was named the chairman of the NGX Regulation Limited, while Tinuade Awe is managing director/chief executive officer.

The NGX Real Estate Limited, which is the real estate company, has Erelu Angela Adebayo as chairman and Gabriel Igbeka as the acting managing director.

The Nigerian Exchange Group also unveiled a new identity which includes a new logo that has been applied across all their physical and digital brand touchpoints. Each entity also has a different logo.

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The Nigerian Stock Exchange (NSE) recently received final approvals of its demutualisation plan from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC), hence the changes.

Demutualisation is the process of converting a non-profit, mutually-owned organisation into a profit-making, investor-owned company. This means the bourse has joined the list of exchanges that have transited into a limited liability company, owned by shareholders who provide capital and shares in profits or losses.

Demutualisation enables the exchange to raise capital efficiently and effectively at market-determined pricing. Members can realise the economic value of their interest by exercising the right to sell.

The Exchange can now more easily raise funds to finance strategic objectives and expansion. The opportunity for a potential initial public offer (IPO) or strategic investment is created, opening up opportunities for domestic and institutional investors, and creating liquidity for existing members.