Introduction

NASD, Nigeria's over-the-counter securities exchange, has announced a N12 billion rights issue aimed at bolstering its capital base and preparing for its next growth phase as a composite exchange. Chairman Kenechi Ezezika called the recapitalisation a pivotal moment, emphasizing the need to meet rising expectations around efficiency, transparency and technology.

What Happened

The offering comprises 480 million new ordinary shares with N1 par value priced at N25 per share. Shareholders can subscribe four new shares for every five held at the qualification date. If fully taken up, the deal should raise N12 billion in gross proceeds, giving NASD extra capacity for technology, infrastructure, talent and market-development. Anchoria Capital Group leads as the issuing house, with Greenwich Capital Markets, Capital Bancorp Plc and Capital Assets Limited as joint coordinators. The offer is set to open Monday, pending regulatory sign-off.

Why This Matters

Beyond the immediate capital, the rights issue positions NASD for technology-driven growth and broader market participation. The move aligns with Nigeria's capital-market recovery, including CBN rate cuts, FTSE Russell inclusion and the Dangote IPO. For shareholders, the four-for-five structure maintains proportional stakes while the total share count increases by 80 percent.

Key Takeaways

  • N3.25 billion of net proceeds earmarked for working capital over 18 months
  • N300 million designated for cloud trading systems and support within 12 months
  • N8.174 billion, the largest portion, goes to portfolio investments for market development, including potential acquisitions, partnerships or platform expansions
  • Full subscription lifts NASD's share count from 600 million to 1.08 billion, implying a post-issue market capitalisation of roughly N27 billion at the N25 issue price
  • The 4-for-5 rights ratio preserves existing investors' proportional ownership, and the 80 percent share expansion broadens the base

Conclusion

This N12 billion offering represents a strategic step for NASD as it moves toward composite-exchange status. How well subscribers participate and how quickly the exchange deploys the funds into technology and market initiatives will likely shape its next chapter. Stakeholders should watch these dynamics closely.