NASD Targets N12bn in Rights Issue To Fund Next Phase Of Growth

NASD Plc said it is raising N12 billion through a rights issue to strengthen its capital base and position for its next phase of growth.
The capital raise will support NASD’s regulatory recapitalisation requirements while providing additional financial capacity to invest in its technology infrastructure, working capital and broader market-development strategy.
Under the offer, NASD will issue 480 million ordinary shares of N1 each at N25 per share, on the basis of four new shares for every five existing shares held by shareholders as at the qualification date. If fully subscribed, the rights issue will raise N12 billion in gross proceeds.
The rights issue is expected to generate net proceeds of approximately N11.724 billion after estimated transaction costs of N275.875 million.
According to the rights issue prospectus, N3.25 billion, representing 27.08 per cent of net proceeds, will be deployed as working capital over 18 months, while N300 million, representing 2.50 per cent, is earmarked for cloud trading systems and support over 12 months. A further N8.174 billion, representing 68.12 per cent, is allocated to portfolio investments in lieu of future market-development activities.
Speaking at the signing ceremony marking the commencement of the offer process, the chairman of NASD, Kenechi Ezezika said the transaction represented an important step in strengthening the Exchange’s capacity to respond to the changing needs of Nigeria’s capital market.
“This transaction is about building the capacity NASD needs for its next phase of growth. Capital markets are evolving rapidly, and issuers and investors increasingly expect markets that are efficient, transparent and supported by strong technology. This recapitalisation gives NASD greater capacity to respond to those opportunities,” Ezezika said.
The acting managing director and chief executive officer, NASD, Arese Ugwu said the capital raise should be viewed not simply as a regulatory exercise, but as an investment in NASD’s ability to play a larger role in financing Nigerian enterprise.
“For me, recapitalisation is not simply about meeting a regulatory requirement. It is about building the institution we need for the market we want to create. Nigeria has no shortage of ambitious businesses or capital; the opportunity is to build stronger, more efficient markets that connect the two. This capital gives NASD greater capacity to invest in the infrastructure, technology and talent required to deepen market participation, develop new markets and make NASD a stronger platform for capital formation,” Ugwu said.
He added that NASD’s transition towards becoming a composite exchange creates an opportunity to broaden the institution’s role within Nigeria’s capital-market ecosystem and develop markets that serve a wider range of issuers and investors.
Group managing director of Anchoria Capital Group Sam Chidoka said Anchoria, as Lead Issuing House, would work with NASD and other transaction parties to ensure an efficient process, effective shareholder communication and broad participation in the offer.
The managing director, Anchoria Advisory, Damilola Titiladunola explained that subject to regulatory approval, the offer will open on September 28, 2026.