Stakeholders have hailed the Nigerian Stock Exchange (NSE) for receiving its final approvals of demutualisation plan from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) which has helped the stockbroking firms to receive 6 million units of NGX shares which represents N127 million at the current market price of N21.17.
LEADERSHIP Weekend reports that demutualization is a process by which a private, member-owned company, such as a co-op, or a mutual life insurance company, legally changes its structure, to become a publicly-traded company owned by shareholders.
One of the principal officers at Cashcraft Assets Management Ltd, owners of CashCraft Securities, said the company had a significant investment in the NGX that helped in stabilizing their market.
He said that the investment of their company is huge and that they are ensuring that the company is always streamlined along with the present realities.
“We must commend the former management of Oba Otudeko as President and Professor Ndi Okereke-Onyiuke as Director-General of the NSE which has helped the Securities firms,” he said.
The managing director of Mainstreet Bank Securities Limited, Lucky Djebah, had told Nairametrics that they have received the NGX shares.
“We have received the NGX shares from the exchange. Mainstreet will be holding onto the shares because we see value in the company and we have been receiving demand from both individual and institutional investors,” he said.
Also, the managing director of Qualinvest Capital Limited Adeboye Teriba, said they will hold onto the NGX shares.
“We are holding onto the NGX shares for now, so that we can measure the market perception of the new company,” he added.
The head of Securities Trading at Planet Capital, Paul Uzum, also said: “We are holding the share for the long term, however, there has been no demand from individual or retail investors. The NASD market is now getting more attention because of the listing of the NGX shares.”
It was gathered that after deliberation on how the ownership of the proposed shares would be split amongst all members, including dealing members and ordinary members, they concluded that ordinary members, upon listing will receive 2.4 million units of shares while dealing members got 6 million units of shares representing the conversion of the members’ stake to shares.