​​​​​​​​​​​LISTING PROCESS
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​​The process of listing a company on The NSE's market involves a number of strategic steps; the exact steps taken will vary from company to company by the method of flotation and the market the company joins. Below is a general summary of the processes a company will undergo from the time it considers listing on the NSE, through deliberations and up to its eventual debut on the exchange. These steps are meant to serve only as a guide to companies seeking to list on The NSE. The key first step for the promoters of any company is to have a listing mind-set, which forms the foundation for a successful listing.

Consultation and discussion: The company enters the listing process via a preliminary fact-finding stage. The idea to list must be properly conceived, and the company must possess a high-level understanding of what it hopes to achieve by doing so. A company that seeks to raise funds from the capital market may approach its local banker or an issuing house about doing so. Alternatively, the process may also begin when an issuing house approaches a company with a proposal for re-capitalization through the capital market. In the second case, the benefits of public quotation should be explained, and the procedure, waiting time and associated costs of the issue should be clarified. 

Decision-making and mandate: The company convenes board and shareholder meetings where the decision to go public is approved. These bodies then give the issuing house or financial adviser (and Designated Adviser, if the company will be listing on ASeM) a mandate to take action. Where necessary, the company’s Memorandum and Articles of Association must be amended to remove all restrictions on share transfers. The company settles on the amount of capital to be raised as well as the nature of public offering to be made.

Documentation and packaging: The issuing house or financial adviser assists the company in appointing other parties to the issue, including:
  • A stockbroker (in the event that the company is listing on ASeM, the stockbroker is also the designated advisor)
  • Reporting accountants
  • Auditors to the company
  • A solicitor to the issue
  • A solicitor to the company
  • A registrar
  • Underwriters, if the issuer opts for underwriting
Once all parties have been appointed, the company calls an all-parties meeting where functions are allocated, timelines are fixed, costs and fees are agreed upon and all the parties proceed to work and package the share issue. If need be, a second all-parties meeting is held to finalize and get the application ready.

NSE quotation approval and SEC registration: The appointed stockbroker (also the Designated Adviser, if the company is listing on ASeM) submits the company’s application to the NSE for evaluation, along with all required fees. The NSE communicates with the stockbroker about the outcome of the application. Meanwhile, the issuing house applies to the SEC to register the shares and receives approval.

Completion board meeting: At a meeting of all parties to the issue, including the directors of the company, the offer documents are signed. These documents hold the participants individually and severally liable for all information contained in the prospectus and other offer documents. If the issue is to be underwritten on a firm basis, the underwriting proceeds are paid at the end of this meeting.

Distribution and marketing: Application forms are distributed to accredited receiving agents, with the requisite number sent to the NSE for distribution to its branches and to council members. The application list usually opens for between four and six weeks in the case of a retail offer. (Companies can also opt for a book-building option.) If for any reason an extension of this period is required, the issuers request written approval from the NSE and SEC. 

Range analysis and allotment: Once the offer period has closed, an analysis of share requests is prepared, the allotment made, and both the range analysis and allotment schedule sent to the SEC and the NSE for information purposes. All monies sent by prospective buyers as part of unsuccessful or rejected applications are returned. (Applications could be rejected because they are duplicate or, in the case of companies, if they are unsealed.) If the issue is under-subscribed, all subscribers are allotted their full share request; the balance of the security is cancelled and, if there is no standby underwriting, reverts to the authorized share capital of the issuer. If the issue subscription is under 50%, the issue is aborted. At the conclusion of the allotment process, the CSCS credits the accounts of successful shareholders, while payments of the proceeds are made to the issuer and commissions paid to receiving agents (stockbrokers and banks).

General Undertaking stage and Declaration of Compliance: At this stage, the company prepares and delivers the following to the NSE on its letterhead:
  • Its General Undertaking (as set out in Appendix III of the Rules Governing Listing)
  • A Declaration of Compliance (see Appendix XIV of the Rules Governing Listing, with amendments to suit the method of offer)
Listing and facts behind the listing: On the day of the listing, a briefing on the importance of adhering to the post-listing requirements of the NSE is held for the company’s executives and registrar. Following the briefing, the shares are listed, with a ‘facts behind the listing’ presentation held at the close of the day’s trading.​

Thinking of listing your company? Please email us at listingsales@nse.com.ng​ and one of our relationship managers will be in touch promptly. You may also contact us at +234-1-4489363 or +234-1-4489373  with queries or requests for further clarification.