How to List a Company on the Nigerian Stock Exchange


We have talked about the benefits of listing your company on the Nigerian Stock Exchange (NSE) and now, we shall discuss how to list your company on the Nigerian Stock Exchange (NSE).

The Nigerian Stock Exchange(NSE) provides companies seeking to list on the Exchange a number of options. Prospective issuers are advised to discuss the different methods of going public with their advisers. The issuers’ choice will often depend on the nature of its business, capital requirements and strategic objectives.

Below are ways of listing your company on the Nigerian Stock Exchange (NSE)

How to list your company on the Nigerian Stock Exchange (NSE)

Initial Public Offering (IPO)

The general public subscribes to your shares in the primary market, using either or both of the following processes:

  • Offer for subscription, where the unissued portion of your authorized share capital is released for purchase by the public. The capital raised goes into the company’s account.
  • Offer for sale, where the company’s already issued and paid-up shares are offered to the public by current shareholders. The capital raised goes to the selling shareholders, allowing initial shareholders or promoters to cash out their investment.

The shares released in the course of the offering will afterward be listed on the NSE.

Listing by Introduction

Your company’s shares are listed without a prior IPO. The company would usually have raised capital prior to applying to list, and also must meet the listing requirements – including a minimum number of public shareholders (300 to list on the Main Board; 51 to list on the ASeM) and minimum public float (20% for the Main Board; 15% for ASeM).

Reverse Acquisition/Reverse Takeover/Reverse Merger

In a reverse acquisition (also known as a back-door listing or reverse takeover or reverse merger), an unlisted private or public company acquires majority ownership in a company already listed on The Exchange. As a result, the company becomes the successor business that operates a public company. The surviving company is required to satisfy the initial listing requirements of the particular listing Board.

Direct Listing/Dual Listing

A dual listing on the NSE is an option available to companies already listed on another stock exchange, or that seek to list on the NSE and another stock exchange which will serve as the company’s primary listing. A prospective issuer applying for a primary listing on another exchange must be listed on that stock exchange before a listing on the NSE can be granted. Companies seeking a dual listing are typically required to have an operating track record of at least two years, and be incorporated or otherwise established in a jurisdiction where the standards of shareholder protection are at least equivalent to those provided in Nigeria (as determined by the NSE). However, the company is not required to have operations in Nigeria.

Depositary Receipts

Depositary receipts (DRs) are certificates representing evidence of ownership of a company’s shares held by a depository. Foreign issuers listed on another stock exchange acceptable to the NSE can seek listing through the depositary receipt programme. DRs can provide issuers increased flexibility to meet their corporate and financing objectives.

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