NGX Group to Open E-offering Platform for Public Offers, Rights Issue

Date:

June 27, 2024.

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Azonuchechi Chukwu.

In preparation for the bank’s recapitalisation exercise, the Nigerian Exchange Group Plc (NGX Group) has concluded plans to unveil an e-offering platform, subject to the approval of the Securities and Exchange Commission (SEC).

The digital platform is designed to revolutionise public offerings and the rights issue process in the Nigerian capital market. It provides a smarter, more convenient and more efficient way to manage public offers.

Mr Temi Popoola, Group Managing Director of NGX Group, said this at a news conference and stakeholder engagement session held on Wednesday in Lagos. Popoola stated that the platform marked an important moment in the evolution of the Nigerian capital market.

He added that with the support of SEC and other capital market stakeholders, the Exchange had developed an end-to-end digitised market infrastructure platform.

According to him, the platform will distribute financial products, particularly for public offers and rights issues, using an online platform that provides a level playing field for all participants.

Popoola noted that as banks aimed to fulfil their revised minimum capital requirements via primary markets, SEC. He also noted that NGX Group had committed to facilitating a seamless process to help them and other issuers meet their business objectives.

“This partnership between SEC and NGX Group represents a major advancement in the modernisation of Nigeria’s capital market infrastructure.

“It aims to improve efficiency, transparency and accessibility for all participants in the market. This innovative platform represents a significant advancement in digitising the capital raising process for issuers.

“I can assure the investing public that robust payment systems, comprehensive Know Your Customer (KYC) protocols and strong fraud, and risk management measures are fully integrated into the platform.

“The E-offering platform ensures that standard capital market intermediation is upheld without compromise,” he said. Popoola noted that the e-offering platform, designed to increase retail engagement in the capital market would enhance financial inclusion.

According to him, it will also expand the available capital pool in line with the transformation goals specified in the updated capital market master plan.

The GCEO NGX Group added that stakeholders were expected to enjoy enhanced efficiency, streamlined due diligence capabilities, accessibility, faster information dissemination, and seamless compliance.

He, however, noted that it would be with regulatory requirements, among other benefits on the platform. The managing director assured stockbrokers of their integration into the digital platform.

Popoola emphasised that the platform was designed to accommodate them and not aimed at dismissing their role in the chain of offering trading nor denying them of their financial benefits and bonuses.

In his address, Dr Emomotimi Agama, Director-General of SEC, commended the NGX Group and its partners on the initiative. Agama said that the digital transformation initiative was a testament to a shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the industry’s master plan.

He noted that by leveraging technology, regulators and operators can attract the younger generation of investors, enhance regulatory oversight, and create a world-class market.

Agama said: “This digitization platform will play a crucial role in setting a new standard for capital raising in Nigeria and enabling the capital market’s support for the achievement of the one trillion dollar economy target of the current administration.”

In his remarks, the NGX Group Chairman, Dr Umaru Kwairanga, appreciated the SEC for its support in digitalising the capital market while urging all stakeholders to embrace the E-offering initiative.

Kwairanga stated that although the initiative was coming at a period when banks were directed to recapitalise, noting that the NGX Group had been working on achieving this feat for the past six years. He said: “It is important that we all embrace this initiative and remove paper applications from our market to bring more retail investors on board.

“We cannot continue to have less than 100,000 retail investors on our platform in a country with a population of more than 200 million people.” (www.naija247news.com).

Chukwu Azochukwu, The Naija247news
Chukwu Azochukwu, The Naija247newshttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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