Norrenberger Securities Limited has acquired a 4.35% strategic stake in NASD Plc for a stunning N1.3 billion, in what industry watchers described as the most significant institutional vote of confidence in the over-the-counter (OTC) market this year.
The National Association of Securities Dealers (NASD) is Nigeria’s over-the-counter exchange where securities that are not listed with the Nigerian Exchange (NGX) Group are traded across the counter.
Though self-regulatory, it is registered with the Securities and Exchange Commission (SEC).
The high-stakes acquisition — priced at N60 per share, compared to NASD’s current N28.35 — represents the largest institutional transaction on the NASD platform this year. The sellers, a trio of GTI Group affiliates (GTI Securities Limited, GTI Capital Limited, and GTI Asset Management & Trust Limited), offloaded 21.76 million shares, marking a decisive generational shift in NASD’s ownership structure.
For Norrenberger, the transaction is more than an equity purchase — it’s a strategic declaration that Nigeria’s private market infrastructure has untapped value. By paying a 111% premium, the firm has signaled its belief that NASD is still grossly undervalued and poised for a new growth phase, a view supported by the exchange’s stunning financial performance and soaring share trajectory in recent years.
GTI’s exit, Norrenberger’s entry: A generational shift
GTI’s divestment underscores a strategic reshuffle within Nigeria’s financial ecosystem.
- GTI Securities Limited: 17,190,179 shares sold for N1.03 billion
- GTI Capital Limited: 3,395,432 shares sold for N203.7 million
- GTI Asset Management & Trust: 1,176,199 shares sold for N70.6 million
While GTI exits after years of building exposure in NASD, Norrenberger’s aggressive entry points to a fresh wave of institutional belief in the long-term strength of the OTC exchange, a market segment that has quietly evolved from obscurity to significance in Nigeria’s broader capital formation landscape.
The N1.30-to-N29.98 NASD miracle
When NASD Plc listed its own shares on its trading platform in 2013 at N1.50, few anticipated the meteoric rise that would follow. By July 2025, the stock had reached N29.98, translating to a compound annual growth rate of 28.35% — enough to turn N100,000 into nearly N2 million.
Even in a year defined by market turbulence, NASD shares have gained 93.3% year-to-date, climbing from N15.51 in January to current levels. The exchange’s fundamentals have powered that growth:
- H1 2025 revenue: Up 308% to N657 million
- Q2 2025 Profit: N129.3 million — a 646% turnaround from losses a year earlier
- Trading income: Jumped 264% to N1.07 billion
- First-ever dividend: 20 kobo per share paid in 2025
Analysts see strategic depth behind Norrenberger’s big bet
Market analysts say Norrenberger’s move reflects strategic foresight rather than exuberance. According to Mr. Tajudeen Olayinka, CEO of Wyoming Capital and Partners, the premium paid on NASD shares “represents a forward-looking statement from the buyer,” implying that Norrenberger believes NASD’s true value is yet to be fully realized.
“NASD OTC Exchange is currently undervalued, and its fair and true value could be exhumed when new life is injected into the company in no distant future,” Olayinka said. “Come to think of it, NASD should ordinarily have more public companies admitted to its quotation than any securities exchange in Nigeria, given the large number of public firms yet to approach any regular exchange for listing. What Norrenberger has bought into is that unrealized potential.”
Olayinka’s comments echo a growing sentiment among market professionals that the NASD platform — originally designed for unlisted securities — has only scratched the surface of its capacity to democratize private market access.
“It’s About Intrinsic Value,” says Kebira
For Mr. Aruna Kebira, CEO of GlobalView Capital Limited, the N60-per-share price tag underscores that the acquisition was based on intrinsic value, not prevailing market sentiment.
“The high premium of N60 per share, compared to N28.35 on the market, is the real value of the stock. This kind of strategic acquisition or private placement is not necessarily about the market price — it’s about what the buyer perceives as the company’s worth,” Kebira explained.
He noted that such a premium reflects deep due diligence:
“The buyer must have sat down, done their valuation, and concluded that NASD will outperform its current price levels in the future. The market price simply reflects perception, not reality. The intrinsic value, which is the true worth, is often much higher than what appears on the trading floor.”
Kebira added that Nigeria’s markets remain highly information-driven, meaning that new insights or transactions often reshape perception and repricing.
“You can see it even on the Nigerian Exchange — one minister’s statement can turn the market around overnight,” he said. “This acquisition has drawn attention to NASD’s true value. In the coming days and weeks, the market will begin to price the stock closer to that acquisition value.”
Asked whether NASD’s share price could fall back below N30, Kebira said the market ultimately decides. “It depends on how the market internalizes this transaction. If investors believe the acquisition price reflects real value, they’ll price it up. The timing may be uncertain, but in the end, the market always has the final say.”
Why the deal matters
Why Pay N60 for a N28 stock? To the casual investor, Norrenberger’s 111% premium may look excessive. But to sophisticated market players, it reflects an insider conviction about the exchange’s expanding role in Nigeria’s financial future — from facilitating private market liquidity to positioning for the next phase of digital securities trading.
By buying into NASD’s story at such a premium, Norrenberger is betting on the long-term institutionalization of Nigeria’s private markets — a space expected to gain prominence as more unlisted public companies seek liquidity and investor visibility.
As Olayinka observed, the deal is a signal to regulators and market operators to activate the latent potential of Nigeria’s OTC space. And as Kebira added, the transaction “has simply reminded the market of NASD’s real value.”
In the end, the N1.3 billion bet may not just redefine NASD’s valuation — it could reprice confidence in the very architecture of Nigeria’s alternative capital markets
