The Securities and Exchange Commission (SEC) has said ‘yes’ to the rules for listing on Nigeria Exchange’s new Technology Board.
The technology board is a specialised platform for technology-based companies to list and raise capital on The Exchange.
Through the board, NGX aims to encourage investments in indigenous technologically inclined companies and others across Africa, provide greater visibility to these companies and ultimately deepen the Nigerian capital market.
Securities listed on NGX Technology Board will be accessible to qualified institutional investors, retail investors, and high-net-worth investors.
The approval by SEC has come as the Nigerian Exchange positions itself to get its bite from Nigeria’s growing startup market that has produced five unicorns (companies at early stage of business but each of whose valuation is already $1 billion and above) and made it the tech capital of Africa.
Major players like TeamApt, Jumia, Konga, OPay, Interswitch, Flutterwave, Andela, and other tech-based companies now have opportunity to raise funds through the exchange.
McKinsey & Co expects an expansion in the continent’ financial services revenue from $150 billion to $230 billion in the five years to 2025.
Francophone West Africa and Ghana are projected to grow at the swiftest pace, with Nigeria and Egypt coming in tow.