Stakeholders seek sale of NSE shares by way of public offer

FOLLOWING the approval given to the Nigerian Stock Exchange, NSE to commence move for the demutualisation of the exchange, a section of stakeholders in the nation’s capital market is canvassing that the eventual sale of its shares to the public should be done by way of public offer.

The stakeholders said that the NSE should ensure that money bags do not hijack the bourse to the detriment of all Nigerians, as Initial Public Offer, IPO will be the best option to demutualise the exchange , since it would give everybody equal opportunity to participate.

Demutualisation refers to the conversion of a non-profit, mutually owned company, such as the NSE in this case, to a profit entity limited by shares. Demutualisation segregates ownership and management from the trading rights of the members of an exchange.

Speaking to Vanguard on the demutualisation of the NSE, Mr. Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria, PSAN said “It is a good development that the NSE is going public, so we implore the Council of the NSE to make sure that there is transparency in the sale of the shares to the public. We don’t want a situation where few people will hijack the shares because as it is now only few wealthy people control it.

“If the exchange goes public it would attract more retail investors into the market. In fact, we want the exchange to be all inclusive and transparent enough to accommodate all classes of the people in the country.”

Mr. Oderinde Taiwo, National Co-ordinator, Proactive Shareholders Association of Nigeria, PROSAN, said, “We want the exchange to be transparent enough when the time comes for the public offering of the shares. We don’t want a situation where money bags will hijack the exchange. It is a step in the right direction that members of the NSE had taken. Demutualising the exchange would significantly increase confidence of local and foreign investors and enhance activities in the stock market. Once the exchange is demutualised it will open a new vista of trading at the NSE.”

Mr. Sola Oni, Stockbroker /CEO, SOFUNIX Investment and Communications Limited, said “Demutualization of the NSE had been put on the front burner since the era of the former Director General, Professor Ndi Okereke-Onyiuke. It is an innovative approach to running a modern stock market. I think, of all the members of the World Federation of Exchanges (WFE), only eight including our market are still operating like clubs.”