NGX launches e-platform for public offerings, rights issues

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

In a statement on Friday, NGX Group said the platform, approved by the Securities and Exchange Commission (SEC), is now operational — offering an efficient, convenient, and seamless experience for managing primary market transactions.

The company said NGX Invest represents a significant leap forward in improving stakeholder experience 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% of whom were female and 85% under the age of 40 – NGX Invest enhances transparency and accessibility in primary market transactions,” NGX said.

“The launch of NGX Invest comes at a crucial time, coinciding with the Central Bank of Nigeria‘s (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.”

ACCESS HOLDINGS, FCMB GROUP UTILISING NGX INVEST APIs TO DISTRIBUTE OFFERINGS 

Speaking on the potential of the innovation, the company said 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 are in the process of onboarding.

Emomotimi Agama, director-general of SEC, commended the initiative, saying it aligns with the commission’s objectives.

“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,” Agama said.

“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.”

Umaru Kwairanga, group chairman of NGX Group, commended the regulators for their support in enabling the swift delivery of the platform.

This, he said, demonstrates a mutual commitment to market development and will undoubtedly enhance retail investors’ participation in the capital market.

“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,” the chairman said.

Also speaking, Temi Popoola, the group managing director of NGX Group, expressed enthusiasm for the new platform, noting 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,” Popoola said.

“This platform demonstrates our commitment to innovation and strengthening Nigeria’s capital markets, particularly as we support the banking sector’s recapitalisation efforts.”

Popoola said NGX iInvest 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.

On July 11, NGX unveiled its impact board, a platform for listing sustainability instruments, following approval from the SEC.