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 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. Speaking at the signing ceremony marking the commencement of the offer process, NASD Chairman 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.” Acting Managing Director and Chief Executive Officer 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. He said, “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.”