The Securities and Exchange Commission has approved the Nigerian Exchange Group’s Invest, a digital platform designed to streamline public offerings and rights issues in the capital market.
In a statement released by the NGX, the platform is live and promises to offer an efficient, convenient, and seamless experience for managing primary market transactions.
The platform is built on the success of the country’s first digital public offering in 2021, which attracted over 150,000 new retail investors, with 75% being female and 85% under the age of 40.
It aims to enhance transparency and accessibility in primary market transactions. According to the NGX, the launch of Invest coincides with the Central Bank of Nigeria’s banking recapitalization directive, leading to numerous subscription offers and rights announcements by Nigerian banks.
Access Holdings, FCMB Group, and Fidelity Bank are utilizing the NGX Invest APIs to distribute their offerings to retail investors, with more banks in the process of onboarding.
Emomotimi Agama, the Director-General of the Securities and Exchange Commission, commended the initiative, stating, “The e-offering platform aligns perfectly with our objective of future-proofing the Nigerian capital market. By digitalizing and automating financial intermediation processes, we are fostering a more efficient, transparent, and inclusive capital market.
Our focus is on creating an enabling regulatory environment that promotes innovation without compromising compliance or investor protection.” Umaru Kwairanga, Group Chairman of NGX Group, praised the regulator, noting, “The supportive regulatory environment has provided a solid foundation that enabled the swift delivery of the platform.
This reflects our mutual commitment to market development and will undoubtedly contribute to boosting the participation of retail investors in the capital market.”
The Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, expressed enthusiasm for the new platform, stressing its significance in NGX Group’s digital transformation journey and its potential to enhance market access and foster economic growth.
CEO of NGX, Jude Chiemeka, highlighted the platform’s transformative potential noting, “NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues. It will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence.”
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