The Namibia Securities Exchange (NSX) is advancing plans to demutualise and transition into a public company, with the exchange targeting completion of the process by 2027.
NSX Chief Executive Officer Tiaan Bazuin said the exchange has been working on the demutualisation process and is preparing for a special general meeting to seek approval for the proposed transition.
The move follows the announcement of the Financial Institutions and Markets Act, which was among the regulatory developments the exchange had been awaiting before progressing with the process.
Bazuin said that once approval for the demutualisation is secured, the NSX will need to complete additional regulatory processes before it can become a public company.
He expects the exchange to be established as a public company by around this time next year, although a potential listing of the NSX would be a separate process.
“The NSX has been in the process of demutualisation for a while. We were awaiting the Financial Institutions and Markets Act to be announced, and that has happened. In fact, we’ve got our special general meeting to approve the demutualisation on Thursday. So that’s progressing quite well,” Bazuin said.
“After that, there are some regulatory steps to follow through, but I believe that by this time next year, we’ll be set up as a public company, not necessarily listed yet, because that’s another process to follow.”
Bazuin said the exchange is also seeking to attract more dual-listed companies by increasing the proportion of pension fund investments that can be allocated to such companies.
According to Bazuin, the NSX already hosts companies from South Africa, Australia, Canada and Mauritius, but increased participation could broaden investment opportunities available to Namibian investors.
Meanwhile, the NSX is continuing with the dematerialisation of securities and implementation of its Central Securities Depository (CSD).
Bazuin said the initiative will enable dematerialised bonds to trade electronically on the market, improving transparency and price execution for investors.
The exchange expects both bonds and equities to be dematerialised by around this time next year, alongside progress towards its transition into a public company. “Hopefully, we’ll see a publication of an approval for us to become a public company, if not by the end of this year, hopefully early next year. And then dematerialisation of not only the bonds, but also the equities, by this time next year,” Bazuin said
