Our Unique Advantage
Welcome to the listings portal of the Nigerian Stock Exchange, The Gateway to African Markets
The Nigerian Stock Exchange hosts nearly two hundred listed companies in twelve diverse sectors, including several global brands. We service the second largest financial centre in sub-Saharan Africa. We are also the third largest stock exchange in Africa by capitalisation and the leading exchange in West Africa.
We have 13 branches spread across key cities of Nigeria and our corporate headquarters in Lagos. From these locations we provide best in class services in the trading and distribution of exchange products. through a dedicated team of professionals
The Nigerian Stock Exchange is an affiliate member of the World Federation of Exchanges (FIBV). We are also an observer at meetings of International Organization of Securities Commissions (IOSCO), and a foundation member of the African Stock Exchanges Association (ASEA).
Nigeria the Preferred Investment Destination in Africa
• A large and growing population of 160 million, attracting increasing direct investment from consumer goods and infrastructure companies
• One of the fastest growing economies in the world
• Identified as one of the Next Eleven countries projected to be one of the world’s largest economies in the 21st century
• One of the largest pools of investment capital on the continent, with five million registered capital market investors
Our best in class services are hinged on
· Exciting partnerships for value added services TO LISTED COMPANIES
· ACTIVE ADVOCACY ON BEHALF OF OUR LISTED COMPANIES
· Transparency in reporting, regulation and compliance
· Efficiency in processes and transaction dynamics
· OFFERING WIDER ISSUER CHOICE through AN EXPANDING SUITE of product offerings
Listing on The Nigerian Stock Exchange
Issuers of tradable securities submit an application for the admission of their securities to the exchange. Upon review and approval of an application, issuers are required to pay certain fees that are based on the market value of those securities at the time of application. Two different fee scales are applied for admission – one for larger issues and the other for smaller issues. Annual fees are also payable by all issuers of equity and debt instruments. Issuers and The Exchange would consider the following (among other things) in determining the most appropriate market for an issue:
• How much money the company is looking to raise from the public
• The percentage holding the company is willing to give up
• The number of shareholders the company has
• The number of years the company has been operational, in terms of the availability of financial statements
All companies seeking to list must be introduced to the Exchange by a dealing member (broker-dealer), who acts as an intermediary between the company and the Exchange. Their duties include, ensuring that all companies comply with the listing requirements of the Exchange and other statutory provisions in the Investments and Securities Act 2007 and the Companies and Allied Matters Act 2004. The NSE’s listing requirements, both pre- and post-listing, are approved by the Council (the Board) of the Exchange.
Benefits of Listing
• Growth – Access to long-term capital; can also facilitate lower cost of borrowing
• Visibility – Inclusion in local and foreign indices and portfolios
• Transparency – Greater public confidence through listing disciplines
• Continuity – A basis for company valuation and existence beyond founders
• Sustainability – Spreads risk of long-term investment projects
Routes to Listing
• Initial Public Offering (IPO) – A company offers shares to the public for the first time. Money paid by investors for the newly issued shares goes directly to the company to provide capital for future growth, or to refinance debt. A company may include an offer for sale element in its IPO, where funds will go to divesting shareholders – this helps to increase the public float.
• Introduction – A company’s shares are "introduced" to the market with a pre-agreed insider sale for public float, having complied with the Exchange’s Listing Requirements.
Stages to Listing
• Deliberation – Consultations and discussions held by the company with advisers (issuing house) on the prospects of listing
• Decision – Formal discussions between the company’s executive committee and documentation of the resolution to list
• Appointments – Formal selection and appointment of parties (advisers) to the listing
• Application – Securing approval to list from the Securities and Exchange Commission (SEC) and The Nigerian Stock Exchange
• Board meeting – All parties meeting to execute documents
• Marketing – Promotion and distribution of the shares in issue to investors
• Allotment – Analysis and allocation of shares by registrars
• Undertaking – Declaration of compliance by the issuing company to the Exchange
• Listing – Admission to the board and to the Daily Official List of the Exchange
Parties to a Listing
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Overall co-ordination of IPO process
Co-ordination of due diligence and application document
Ensure compliance with applicable rules
Develop investment case, valuation and offer structure
Manage communication with SEC
Advise the company’s board |
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Prepares company for roadshow
Facilitate research
Build the book pre-float
Acts as point of contact with NSE
Marketing and distribution
Pricing and allocation/advice |
Solicitors |
Legal due diligence
Draft and verification of application document
Corporate restructuring
Provide legal opinions |
Reporting Accountant |
Review financials – assess company’s readiness for IPO
Tax structuring
Financial due diligence - long term, short term and working capital reports |
Investor Relations |
Develop communication strategy to support pre-IPO process
Enhance market perceptions to develop liquidity and support share price
Pre- and post-IPO press releases after flotation |
Other Advisers
Registrars | Receiving Bank | Trustees | Underwriter |
To know more about how to access opportunities on The Nigerian Stock Exchange visit our page on;