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The Nigerian Stock Exchange (NSE) has begun the process of demutualization as it formally calls an Expression of Interest (EOI) for advisers.
“In furtherance of the efforts of the Nigerian Stock Exchange (NSE) to commence its Demutualization, the National Council of the NSE has given approval to engage the services of a consortium of two Financial Advisers (one International and one Nigerian) to undertake the assignment of advising the NSE through the process of Demutualization,” the NSE said in a statement posted on its website, last week.
The NSE which has delayed its proposed demutualization for many years said in the statement that it was inviting Financial Advisory firms to express interest in receiving the Request for proposal (RFP) to act as primary advisers in the Demutualization.
Onyema is seeking to boost trading in stocks after a 47 percent rally in the market’s all-share index in 2013 as the exchange of Africa’s most populous country targets a $1 trillion market value by 2016 from the current $76 billion.
The demutualization is seen as one of the necessary steps to be taken before the NSE can achieve its aims.
The bourse intends to list global depository receipts this year and has identified about 20 companies that domestic investors would like to trade, said Onyema in a recent interview.
The Nigerian gauge is still down 38 percent from a March 2008 record, tumbling after a debt crisis caused by investors borrowing to buy stocks before prices crashed.
The All Share Index (ASI) has lost – 8.33 percent year to date.
The Securities and Exchange Commission still needs to release guidelines on the demutualization process, analysts say.
PATRICK ATUANYA
