The National Association of Securities Dealers (NASD), Nigeria’s over-the-counter securities exchange, has launched a N12 billion rights issue to strengthen its capital base and position itself for its next growth phase as a composite exchange.
NASD Chairman Kenechi Ezezika disclosed the strategic rationale for the recapitalisation, describing it as a pivotal moment in the Exchange’s evolution.
The offer comprises 480 million ordinary shares of N1 each at N25 per share, with shareholders entitled to four new shares for every five existing shares held at the qualification date.
If fully subscribed, the offer will raise N12 billion in gross proceeds and provide NASD with additional capacity to invest in technology, infrastructure, talent and market-development initiatives.
Ezezika said the capital raise would provide the capacity needed for NASD’s next phase of growth as market expectations around efficiency, transparency and technology continue to change.
Ugwu also highlighted NASD’s transition toward composite-exchange status as a catalyst for broadening its role in Nigeria’s capital-market ecosystem and serving a wider range of issuers and investors.
The N12 billion offer is expected to generate net proceeds of approximately N11.724 billion after estimated transaction costs of N275.875 million. NASD has outlined a three-part deployment strategy for the funds.
Subject to regulatory approval, the offer is scheduled to open on Monday. Group Managing Director of Anchoria Capital Group Sam Chidoka said the firm would work to ensure an efficient process and broad shareholder participation, while Managing Director of Anchoria Advisory Damilola Titiladunola confirmed the Monday opening date pending final regulatory clearance.
If fully subscribed, the rights issue will increase NASD’s issued shares from 600 million to 1.08 billion ordinary shares.
For existing shareholders, the four-for-five rights issue provides an opportunity to maintain their proportional ownership by taking up their entitlement, while the enlarged share base increases the number of shares in issue by 80%.
