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

…Establishes digital advisory panel

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 emphasised 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.

…Establishes 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.