NASD Targets N12bn in Rights Issue to Fund Next Phase of Growth
Kayode Tokede NASD Plc has said it is seeking to raise N12 billion through a Rights Issue as the securities exchange strengthens its capital base and positions itself for its next phase
The Nigerian Securities and Exchange Commission (SEC) is planning to raise N12 billion through a rights issue to support NASD Plc, the country's securities exchange. The capital raise will help NASD meet its regulatory recapitalization requirements and invest in technology infrastructure, working capital, and market development.
Under the offer, NASD will issue 480 million ordinary shares at N25 per share, based on four new shares for every five existing shares held by shareholders. If the rights issue is fully subscribed, it will generate N12 billion in gross proceeds. NASD Chairman Kenechi Ezezika stated that the transaction is crucial for strengthening the exchange's ability to cater to the evolving needs of Nigeria's capital market, which is rapidly changing.
The capital raise is not just a regulatory requirement, but an investment in NASD's capacity to become a more efficient, transparent market that supports market evolution. Acting Managing Director and CEO Arese Ugwu emphasized that recapitalization is about building an institution capable of financing Nigerian enterprises and developing the market.
He added that the capital will enable NASD to invest in the necessary infrastructure, technology, and talent to deepen market participation, foster new markets, and position the exchange as a stronger platform for capital formation.
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