NGX Group unveils e-offerings platform

The Nigerian Exchange Group (NGX Group) has launched NGX Invest, a digital platform designed to streamline public offerings and rights issues in the Nigerian capital market.

In a statement released in Lagos, NGX Group said that the platform, approved by the Securities and Exchange Commission (SEC), is now live.

The Exchange also said that NGX Invest would provide an efficient, convenient and seamless experience for managing primary market transactions.

It noted that this represents a significant leap forward in improving stakeholders’ experiences within Nigeria’s capital market.

“Building on the success of the country’s first digital public offering in 2021, which attracted over 150,000 new retail investors, 75 per cent of whom were female and 85 per cent under the age of 40.

“NGX Invest enhances transparency and accessibility in primary market transactions,” the Exchange said.

According to the capital market regulator, the launch of NGX Invest comes at a crucial time, coinciding with the Central Bank of Nigeria’s (CBN) banking recapitalisation directive.

The NGX said the recapitalisation exercise had prompted numerous offers for subscription and rights announcements by Nigerian banks.

It said both the CBN and SEC had provided robust regulatory support for the initiative, adding that investors could access the platform at https://Invest.ngxgroup.com.

The Exchange stated that Access Holdings Plc, FCMB Group and Fidelity Bank Plc were already utilising the NGX Invest APIs to distribute their offerings to retail investors.

According to it, more banks are in the process of onboarding to leverage the platform.

Commenting, Dr Emomotimi Agama, Director-General of SEC, commended the initiative, adding that the e-offering platform aligns perfectly with the objective of future-proofing the Nigerian capital market.

Agama stated that by digitalising and automating financial intermediation processes, stakeholders foster 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 the NGX Group for its strategic investment in advancing our capital markets,” he said.

Also, Alhaji Umaru Kwairanga, Group Chairman of the NGX Group, commended the regulators, noting that their supportive regulatory environment had provided a solid foundation that enabled the swift delivery of the platform.

Kwairanga noted that this reflected the mutual commitment to market development and would undoubtedly contribute to boosting the participation of retail investors in the capital market.

He 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.

Mr Temi Popoola, Group Managing Director of NGX Group expressed enthusiasm for the new platform.

Popoola noted its significance in NGX Group’s digital transformation journey and ability to enhance market access and foster economic growth.

“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,” he said.

According to him, the NGX Invest is designed to significantly enhance the efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers’ capital-raising efforts.

In his remark, Mr Jude Chiemeka, CEO of NGX, underscored that the NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues.

Chiemeka said that the platform would expedite reconciliation and allotment processes, reduce unclaimed dividends and boost investors confidence.

According to him, all stakeholders, including investors, registrars, issuing houses, brokers, banks and regulators stand to benefit significantly from the innovation.