NGX contemplates private issuance for non-listed companies, targets tech startups

The Nigerian Exchange (NGX) is contemplating the launch of a private issuance market that permits non-listed companies to raise capital and conduct other transactions through the Exchange’s platform.

The Chief Executive Officer of the Nigerian Exchange (NGX), Mr Temi Popoola, indicated that discussions with the Securities and Exchange Commission (SEC) have commenced regarding the introduction of private markets, enabling the Exchange to engage with non-listed companies.

He noted that, “Most emerging sectors such as the fintechs and other startups have shown preference for private capital.”

Popoola also emphasized that the demand for private capital surpasses that for public capital, leading to the consideration of a private market tailored for non-listed companies like startups.

This private market initiative is an integral part of NGX’s strategy to tap into the significant growth potential of Nigeria’s tech startups and other companies, the majority of which favour private capital investments.

NGX established a digital advisory panel

As part of its digital transformation agenda, NGX has established a digital and technology products advisory panel.

This panel serves as a platform for the Exchange to engage with the capital market community and the fintech ecosystem, to enhance and expand NGX’s digital product offerings.

The panel serves as a platform where the Exchange engages with the capital market community and the fintech ecosystem to bolster and expand NGX’s digital product offerings.

Backstory

Last December, the SEC approved the listing rules on the NGX Technology Board, to promote investments in technologically inclined companies based in Nigeria and across Africa.

This approval is designed to offer increased visibility to these companies.

NGX is also in the process of launching Non-Depository Receipts (NDR) as part of its innovative efforts to further enrich the Nigerian capital market.