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RMB, RMBNS act as financial adviser, sponsoring stockbroker for NGX Group listing

Rand Merchant Bank Nigeria Limited (RMB) acted as Financial Adviser for the Nigerian Exchange Group Plc (NGX Group) in the successful listing of its shares on the main board of the Nigerian Exchange Limited.

The listing follows the successful demutualisation and restructuring of the former Nigerian Stock Exchange (NSE) in April 2021. RMB acted as a Financial Adviser to the demutualisation and RMB Nigeria Stockbrokers acted as a co-sponsoring stockbroker, managing the listing process end-to-end, ensuring a seamless termination of its trading on NASD OTC and transitioning to the main board of the NGX.

Commenting on the transaction, Michael Larbie, CEO of RMB in Nigeria & Regional Head West Africa said: “The successful listing of NGX Group represents another significant milestone in the evolution of NGX Group and provides access to strategic opportunities and resources required for its establishment as an African Exchange Hub, and a primary enabler of growth capital for the Nigerian economy.

“The company will have access to a wide range of new investors within the Nigerian investing public as well as international institutions, thereby reinforcing the Group’s presence in international capital markets. As an Adviser, we are very proud to be part of this landmark transaction and look forward to partnering with NGX to further develop the capital markets.”

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A total of 1, 964, 115, 918 shares at the listing price of N16.15kobo were admitted to trading under the ticker “NGXGROUP”. The listing was highly successful with strong demand, which saw the share price close up 10% on the listing price, the maximum daily increase allowed on the NGX platform. The shares attained an intra-day peak price of N25.90 within a week of its listing and is currently stable at around N20.00.

According to Layi Olaleru, CEO, RMB Nigeria Stockbrokers: “There will be greater accountability and governance in the management of the bourse with the timely publishing of all interim and final financial results in compliance with the post-listing obligations. The sustainable protection of all stakeholders’ interest, easy access to capital for investment in trading technology enhancement and new product development are other benefits to be expected from the listing. There is now a separation of trading right from ownership of the exchange, as trading license holders can now sell their NGX Group shares and still retain their trading right as a dealing firm on the NGX Exchange.

The NGX Group is better positioned to deliver greater value to the Nigerian economy as an efficiently managed institution and to the African economy through the African Exchanges Linkage Project (AELP), an initiative supported by ASEA and the African Union under the African Continental Free Trade Area (AfCFTA) initiative.”

The NGX Group now has three subsidiaries – Nigerian Exchange (NGX) Ltd, NGX Regulation (NGX RegCo) Ltd and NGX Real Estate (NGX RelCo) Ltd.

RMB Nigeria has had a long and successful relationship with the NGX Group, as its trusted adviser on a number of key strategic initiatives.

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