NGX listing requirements.
Major indexes of the Nigerian Stock Exchange, NGX – All Share Index, NGX 30 and the other 17 – get their prestige from the companies they trade.
The Exchange allows only companies that meet their listing criteria – even for the most trivial board like the Growth – to list and trade.
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The Exchange has a set of listing requirements that each company must meet to list on the Exchange.
A good accounting standard, best management practices and history are among the criterion that NGX considers when a company applies.
NGX Listing Requirements for All Companies
There are three major NGX boards that are open to companies – growth, main, premium – depending on the foundation of the company.
While that is considered to be the first criteria for listing on the NGX, there are other relevant items to know;
Market Capitalization
- Growth Board – a company must have a minimum of 500, 000, 000 in market cap.
- Main Board – to join on the Standard C, the NGX requires not less than N4 billion at the time of listing (based on the issue price and issued share capital).
- Premium Board – market cap equal or be greater than N200 billion at the date of application and N28 billion for dual listing.
Pre-tax profits
- Growth Board – None
- Main Board – N300 million for standard A and N600 million for Standard B
- Premium Board – N300 million for standard A and N600 million for Standard B
Public Shareholders and Equity
- Growth Board – Not be less than 21 (for equity shares) and 51 for the Standard
- Main Board – Not be less than 300 (for equity shares) and sharehldes equity not less than NGN3 billion.
- Premiuim Board – Not be less than 300 (for equity shares).
Operating Track Record
- Growth Board -2 years minimum
- Main Board – 3 years minimum
The company must also have evidence of a strong technical partner with substantial equity holding and involvement in the Issuers’ management, who has a minimum of 2 years’ operating track record and financial statements.
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NGX Entry level and Standards
Standards are set by the NGX to measure the size of the security to be listed and the basic financial activities of the issuing company. These standards help the NGX maintain their clarity and reputation.
More so, listing standards are not necessarily financial requirements but the company must maintain them. The NGX reserves the right to delist a company from the Exchange for failing to meet these listing standards.