The Nigerian Stock Exchange (NSE) on Tuesday in Lagos launched X-PO, Nigeria’s first end-to-end online platform for the subscription of public offerings (POs).
Mr Oscar Onyema, NSE Chief Executive Officer, said in a statement following the “No Objection” letter received from the Securities and Exchange Commission (SEC).
Onyema said the X-PO, the first end-to-end online public offerings platform in Africa, was designed to enhance the experiences of stakeholders in the public offerings value chain.
According to him, this is by providing a smarter and efficient way to manage public offers in the Nigerian capital market.
He said that serving as self-service portal, X-PO allows investors to conveniently subscribe and make payments for public offers through the web and mobile (USSD), avoiding the hassle of physical completion and submission of public offering application forms and visiting the bank for payment.
He said: “The launch of the X-PO platform reinforces the Exchange’s commitment to revolutionise stakeholders’ experience in the Nigerian capital market leveraging technology.
“The X-PO has been designed to enhance the efficiency of PO subscription process and operational workflow to support Issuers in raising capital and enhance the reach of POs.
”This is done while promoting financial inclusion and retail investors’ participation in the market.
“Furthermore, X-PO will accelerate the reconciliation and allotment process for POs, and reduce the incidence of unclaimed dividends, thereby boosting investor confidence in the capital market.
“The Exchange will continue to innovate and adapt to new technologies that will help companies improve operational efficiency and also enhance corporate governance which is paramount for sustainable business operations”.
He noted that the launch of the X-PO was particularly timely given the new normal occasioned by the COVID-19 pandemic.
Onyema said: “The platform’s sustainable approach affirms NSE’s commitment to deploying environmentally friendly business practices and promoting paperless public offer subscriptions.
“We have also taken into consideration the vital need for privacy and data protection, deploying the highest levels of security to ensure that stakeholders can enjoy a safe and secure digital public offering experience”.
Players within the capital market (investors, registrars, issuing houses, brokers, banks and regulators) can expect to enjoy a wide range of benefits with the launch of X-PO.