NASD launches N12 billion rights issue to fund tech expansion as OTC exchange
NASD has launched a N12 billion rights issue to strengthen its capital base and position itself for growth as a composite exchange. The offer comprises 480 million ordinary shares at N25 per share, with shareholders entitled to four new shares for every five existing shares held. If fully subscribed, the issue will raise N12 billion gross proceeds (N11.724 billion net after costs).
The capital raise supports NASD's transition to composite-exchange status, with funds allocated as follows: N3.25 billion for working capital over 18 months, N300 million for cloud trading systems over 12 months, and N8.174 billion for portfolio investments in market development. NASD Chairman Kenechi Ezezika called this a pivotal moment in the Exchange's evolution, while Acting MD Arese Ugwu described it as an institutional investment rather than just regulatory compliance.
For existing shareholders, the four-for-five rights issue offers a chance to maintain proportional ownership by taking up their entitlement. If fully subscribed, NASD's issued shares will increase from 600 million to 1.08 billion, implying a post-issue market capitalization of N27 billion at the N25 issue price. The offer, led by Anchoria Capital Group with Greenwich Capital, Capital Bancorp and Capital Assets as joint issuing houses, is scheduled to open Monday, September 28, 2026 pending regulatory approval.
Will you consider participating in this rights issue to maintain your stake in NASD's growth as it pursues technology-led market expansion and deeper capital market participation, or would you prefer to sell your rights entitlement in the market?