Nigerian Exchange Group (NGX Group) has unveiled NGX Invest, a digital platform designed to streamline public offerings and rights issues in the capital market.
Gatekeepers News reports that NGX Group revealed this through a statement released on Friday.
It noted that the platform has been approved by Securities and Exchange Commission (SEC) and is now operational.
The platform provides an efficient, convenient, and seamless experience for managing primary market transactions.
NGX Group noted that NGX Invest represents a significant leap forward in improving stakeholder experience within Nigeria’s capital market.
NGX said, “Building on the success of the country’s first digital public offering in 2021 – which attracted over 150,000 new retail investors, 75% of whom were female and 85% under the age of 40 – NGX Invest enhances transparency and accessibility in primary market transactions.”
“The launch of NGX Invest comes at a crucial time, coinciding with Central Bank of Nigeria (CBN) Banking Recapitalisation directive, which has prompted numerous offers for subscription and rights announcements by Nigerian banks.”
“Both the CBN and SEC have provided robust regulatory support for this initiative. Investors can now access the platform at https://invest.ngxgroup.com.”
Speaking on potential of the innovation, the company noted that Access Holdings Plc, FCMB Group, and Fidelity Bank Plc are already using the NGX Invest APIs to distribute their offerings to retail investors, adding that more banks will join.
Director-general of SEC, Emomotimi Agama commended the initiative, saying it aligns with the commission’s objectives.
Agama said, “The e-Offering Platform aligns perfectly with our objective of futureproofing the Nigerian capital market. By digitalising and automating financial intermediation processes, we are fostering a more efficient, transparent, and inclusive capital market.”
“At the commission, our focus is 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.”
Group chairman of NGX Group, Umaru Kwairanga, while speaking, applauded the regulators for their support and swift delivery of the platform.
According to him, this demonstrates a mutual commitment to market development and will undoubtedly enhance retail investors’ participation in the capital market.
Kwairanga said, “As we strive for the market to play a larger role in Nigeria’s economic development, the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, will be essential.”
Group managing director of NGX Group, Temi Popoola, while also speaking, expressed enthusiasm for the new platform.
Popoola noted the platform’s significance in NGX Group’s digital transformation journey and its ability to enhance market access and foster economic growth.
The MD said, “We sincerely appreciate 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 the banking sector’s recapitalisation efforts.”
Popoola added that NGX Invest is designed to significantly enhance efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers’ capital-raising efforts.
