Nigerian Exchange Group (NGX Group) has launched a new digital platform called NGX Investfor the streamlining of Public Offerings and Rights issues in the Nigerian capital market.
Details
The platform, which has been approved by the Securities and Exchange Commission (SEC)is now live, promising an efficient, convenient and seamless experience for managing transactions in the primary market.
By The Numbers
Based on the success of the country’s first digital public offering in 2021 – which attracted 150,000 new small investors75% of which were women and 85% under the age of 40 – NGX Invest enhances transparency and accessibility in primary market transactions.
Zoom in
Access Holdings Plc and Fidelity Bank Plc already use NGX Invest APIs to distribute their offerings to retail investors. More banks are in the process of onboarding to leverage this platform.
What they say
Dr Emomotimi Agama, The Director General of the Capital Market Commission praised the initiative, stating:The e-offering platform is fully aligned with our goal of future-proofing the Nigerian capital market. By digitizing and automating financial intermediation processes, we promote a more efficient, transparent and inclusive capital market. At the Commission, we focus on creating an enabling regulatory environment that promotes innovation without compromising compliance and investor protection. I commend NGX Group for its strategic investment in advancing our capital markets“.
Alhaji (Dr) Umaru KwairangaThe Chairman of the NGX Group praised the regulators, stating, “The supportive regulatory environment provided a solid foundation that enabled rapid delivery of the platform. This reflects our mutual commitment to the development of the market and will undoubtedly help to stimulate the participation of retail investors in the capital market. As we strive for the market to play a greater role in Nigeria’s economic development, technology integration, strong partnerships and collaboration, alongside a positive policy environment, will be essential.”
Temi PopoulaManaging Director/CEO of the Nigerian Exchange Group (NGX Group), expressed excitement about the new platform noting its importance in the NGX Group’s digital transformation journey and its ability to improve market access and drive economic growth.
“We sincerely appreciate the SEC and CBN for their strong support and leadership. Our intermediaries and partners, including the Central Securities Clearing System (CSCS), have been instrumental in achieving this success. This platform demonstrates our commitment to innovation and strengthening Nigeria’s capital markets, particularly as we support efforts to recapitalize the banking sector.”
Jude ChiemekaCEO of NGX, highlighted the transformative potential of the platform:NGX Invest addresses the demand for a more efficient and transparent process in the management of public offerings and rights issues. It will speed up reconciliation and distribution processes, reduce unclaimed dividends and boost investor confidence. All stakeholders – including investors, registrars, issuers, brokers, banks and regulators – will benefit significantly from this innovation.
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