The NASD (National Association of Securities Dealers) is an over-the-counter (OTC) stock exchange that was licensed by the Securities and Exchange Commission (SEC) in 2012. It was established to provide liquidity for investors who were left stranded following the financial crisis of 2008/2009. One of the notable companies traded on NASD is the Niger Delta Exploration and Production Company PLC (NDEP), which saw its shares first traded on NASD at N350 per share on August 1, 2013. Remarkably, NDEP shares peaked at N9,867.38 per share in 2024, marking an astonishing 2,719% capital gain over the span of 11 years.
In a significant development, NDEP rebranded as Aradel Holdings PLC and opened at N197.78 on January 1, 2023. The company has also rewarded its shareholders with dividends of N200 per share. Following a share split to a nominal value of N0.50 on September 30, 2024, Aradel shares closed at N641.06 on October 9, 2024. This transition is part of a broader strategy as Aradel prepares to migrate to the Nigerian Exchange Limited (NGX) on October 11, 2024, with a total of 4,344,844,360 shares.
As of October 4, 2024, Aradel constituted a remarkable 74% of NASD's market capitalization, underscoring its dominance in the OTC market. The NASD aims to support the growth of companies and contribute positively to Nigeria's economy, with a target of achieving a US$1 trillion GDP within the next decade. This evolution reflects the resilience and potential of Nigeria's capital market, showcasing how innovative platforms like NASD can foster investment and economic growth in challenging times. [11cf47ca]