After 11 years of rocky demutualization process, the Nigerian stock exchange will become a public company limited by shares instead of a private company limited by guarantee of members.
Nigeria has become the 57th nation in the world to take such a move after sweeden went the same way in 1993.
On March 10th, Nigerian Stock exchange in a statement said that the Nigerian Exchange Group Plc (‘NGX Group’), which is a new non-operating holding company has been created.
Acording to an article by “Allafrica”, “The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.”
The NSE’s ownership has been extended to the public in a hope of increasing its profitability.
Since its inception 50 years ago, NSE has been surviving on members contribution while at the same time its members managing it.
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