The Securities and Exchange Commission (SEC) Nigeria has approved the regulations for listing on the Nigerian Exchange’s Technology Board.
The NGX, intends to use the Technology Board, which is a specialized listing and capital-raising platform for technology-based businesses, to promote investments in African and indigenous technology-oriented businesses, give these businesses more prominence, and grow the nation’s capital market.
According to the rules, when operational, qualified institutional investors, retail investors, and high-net-worth investors will all have access to the securities listed on the NGX Technology Board.
The rules approved by the SEC for listing on the board contain crucial details about admissions, listing criteria, disclosure requirements, and notification obligations for Issuers, sponsors, investors, and their advisors.
For instance, Section 3.0 of the Rules which covers the eligibility criteria for listing on the Startup Tech segment of the Technology Board, indicate in Section 3.1 that “Every Issuer that seeks admission to the Start-Up Tech Segment of the Technology Board shall first register its securities with the Commission, make a written application to The Exchange, and execute the applicable General Undertaking.”
In addition, the Section 4.0 of the Rules which also spelt out the eligibility criteria for listing on the Big Tech segment of the Technology Board, provided in Section 4.1 that “Every Issuer that seeks admission to the Big Tech Segment of the Technology Board shall first register its securities with the Commission, make a written application to The Exchange, and execute the applicable General Undertaking.”
Both sections of the Rules contained other requirements that must be fulfilled, including listing fees, before an entity can qualify for listing on the board.
Speaking on the SEC’s approval, the Chief Executive Officer of the NGX, Temi Popoola, enthused: “This is a significant achievement that will position the Exchange as an appealing location for capital formation by enterprises within the Technology Sector.
“We are convinced that the NGX Technology Board would support the listing of start-ups on the Exchange as they endeavour to satisfy their financing needs, both those created in Nigeria and those from other African nations”, the NGX boss added.
The approval was granted by the commission at a time the NGX is revving up drives to improve the listing of startup firms in the bourse. At least five unicorns with each valued at least $1 billion) may soon be exploring the opportunities availed by the SEC’s approval to get listed on the NGX Technology board.
