What Is a Listing by Introduction? How a Company Joins the NGX Without Raising Money

A listing by introduction is a way for a company to have its existing shares admitted to trading on the Nigerian Exchange (NGX) without issuing any new shares or selling any existing ones to the public at the time of listing. The company is not raising money; it is opening a market. The shares that its current owners already hold become tradable on the Exchange from the listing date, and anyone with a CSCS account can then buy them through a SEC-registered stockbroker in the ordinary way.

How a Listing by Introduction Differs From an IPO

An initial public offering (IPO) and a listing by introduction both end with a company's shares trading on the NGX, but they get there differently. In an IPO the company, or a selling shareholder, offers shares to the public during an offer period, applications are received, an allotment is made and the shares are then listed. New money changes hands before the first day of trading. In a listing by introduction there is no offer period, no application form and no allotment. The shares that exist on the listing date are the same shares that existed the day before; the only change is that they can now be bought and sold on the Exchange.

• Capital raised: an IPO brings new money into the company or to a selling shareholder; a listing by introduction brings in none.
• Who can take part: an IPO is open to applicants during the offer; a listing by introduction has no offer, so the first public buyers are those who place orders on the NGX after listing.
• Documents: an IPO is supported by a prospectus approved by the SEC; a listing by introduction is supported by a listing document and the Exchange's admission process, and its content requirements are set by the NGX rules.
• Number of shareholders: a listing by introduction is used when the company already has a wide enough spread of shareholders to meet the Exchange's requirements without an offer, which is why it is common for companies that were previously unlisted public companies, were spun out of a listed group or were being restructured.

Why a Company Would List This Way

A company might already have the money it needs but want its shares to trade on a regulated market. Reasons companies give include giving existing shareholders a place to sell, meeting a regulatory or licence condition that requires a listing, making the shares easier to value and use, or as a step in a group reorganisation where a business is separated from its parent and the parent's shareholders receive shares in the new company. Several large companies on the NGX joined the Exchange by introduction rather than by a public offer, including some of the largest by market value.

What Happens to the Shares You Already Hold

If you held shares in the company before the listing, whether because you bought them privately, received them under an employee scheme, inherited them or were allotted them in a group restructuring, a listing by introduction changes what you can do with them rather than what you own. The number of shares you hold does not change. What changes is that the shares can now be sold on the NGX, provided they are in a form the market can trade.

1. Confirm the shares are on the register in your name. The company's registrar holds the register of members and will have written to shareholders about the listing.
2. Dematerialise any certificated holding. Shares held on a paper certificate cannot be traded on the NGX. Your stockbroker and the registrar move them into your CSCS account under your Clearing House Number (CHN).
3. Check for any lock-up. Some listings restrict certain holders, typically founders, directors or large shareholders, from selling for a period after listing. The listing document states who is affected. Ordinary retail holders are not usually restricted, but the document is the place to confirm this.
4. Once the shares are in CSCS, they trade like any other listed share: orders through a SEC-registered stockbroker during NGX trading hours, settlement on T+1 since 1 June 2026.

How the First Day's Price Is Set

Because no shares are sold before listing, there is no offer price. The NGX admits the shares at a reference or listing price, which the company and its advisers propose and the Exchange approves, drawing on a valuation and any recent transactions in the shares. From the first trading session onward the price is set by the order book, subject to the Exchange's daily price limit of plus or minus 10% around the previous close. The reference price is a starting point for trading, not a statement of what the shares are worth, and early trading in a newly introduced share can be thin because most of the shares are still with the pre-listing holders.

Listing by Introduction vs Other Routes to the NGX

• Offer for subscription: the company issues new shares to the public and receives the proceeds.
• Offer for sale: existing shareholders sell part of their holding to the public; the company receives nothing.
• Private placement followed by listing: shares are first sold to a selected group of investors, then the whole share capital is admitted to the Exchange.
• Listing by introduction: no sale of any kind; existing shares are admitted to trading.

Whichever route is used, the company must meet the admission requirements of the board it is joining, including the minimum free float, and after listing it takes on the same continuing obligations as any other listed company: periodic financial reporting, announcements of price-sensitive information and compliance with the NGX rules.

Listing by Introduction: FAQs

Can I apply for shares in a listing by introduction?

No. There is no offer to apply to. If you want the shares after listing, you place an order on the NGX through your stockbroker, and it will be filled only if a holder is selling at a price that matches.

Does the company get any money from a listing by introduction?

No. No new shares are issued and no existing shares are sold as part of the listing, so no proceeds flow to the company or to its shareholders. Any money that changes hands later comes from ordinary trades between buyers and sellers on the Exchange.

I received shares in a spin-off that then listed by introduction. What do I do?

Check that the registrar of the new company has your details and that the shares have been credited to your CSCS account. If your shares in the parent were held electronically, the new shares are usually credited to the same CHN. If they were certificated, contact the new company's registrar about dematerialisation.

Is a share listed by introduction different from any other listed share?

Not once it is trading. The method of listing affects how the shares arrived on the Exchange, not how they are traded, settled or registered afterwards. The company is subject to the same rules as every other company on its board.