NGX remains the preferred listing platform for raising capital

Capital market participants have praised Nigerian Exchange Limited (NGX) for providing a dynamic listing platform that enables governments and corporations to achieve their business goals.

At the NGX CEO Roundtable, themed “Creating an enabling ecosystem for access to capital from Nigerian capital markets”, key stakeholders in the capital markets ecosystem came together to discuss and offer solutions to the challenges issuers face in raising capital in the market.

In his opening remarks, NGX Chairman, Mr. Abubakar Mahmoud, said that “we have convened this roundtable with the ultimate goal of improving the listing experience of listed companies and providing useful insights to companies. potential.

NGX, as Nigeria’s premier stock exchange, remains strategically positioned to support the aspirations of its stakeholders and the Nigerian economy as a whole and we believe the roundtable deliberations will help us improve our operations and our offers in listing experience, market development, advocacy, and investment opportunities.

Delivering the keynote address, the Honorable Minister of Industry, Trade and Investment, HE, Otunba Adeniyi Adebayo said that the federal government was working diligently to improve the economy by diversifying the economy and by strengthening institutions and structures.

Additionally, he said, “as more of our startups grow and mature, we need to ensure they have access to a range of financial options to support their expansion plans.”

The Honorable Minister of Finance, Budget and National Planning, Dr (Mrs) Zainab Shamsuna Ahmed in a goodwill message said that as a nation facing the burden of economic recovery following the global pandemic, the capital market is an efficient and reliable solution for companies to raise capital and for investors to enrich themselves.

Ahmed, who was represented by the Permanent Secretary of the Ministry of Finance, Alhaji Aliyu Ahmed, said the theme of the roundtable is appropriate and will contribute to providing a deep, liquid and integrated capital market that will deepen alternative sources of financing and will boost investors’ confidence to invest in the capital market for the long term.

For his part, the Managing Director of the Securities and Exchange Commission, Mr. Lamido Yuguda, noted that the theme of the roundtable resonates with the mandate of the Securities and Exchange Commission to develop and regulate the market while protecting investors. .

“The Commission welcomes NGX’s sound initiatives as it continues to engage with experts for changes that will lead to more desired market expansion,” he added.

Mr. Temi Popoola, CEO of Nigerian Exchange Limited, reassured stakeholders of NGX’s commitments to enhancing the issuer experience by providing a platform that enables companies to raise capital more efficiently while protecting investors.

“As part of efforts to improve the listing experience for current issuers and attract new listings, NGX has intensified its efforts with policymakers to shape reforms and policies that support listings and the capital market in his outfit.

We are strengthening the value proposition for companies so that they view the capital markets as a platform to raise capital and work to ensure that we are competitive with the options that are available to issuers.

We are therefore actively involved in contributing to policy formulation and advocacy to ensure an enabling environment for listings, including working with multiple stakeholders to ensure that time to market and listing costs are optimized.

Speaking on the benefits of listing on the Exchange, CEO of MTN Nigeria Communications Plc, Mr. Karl Toriola noted that MTN has received incredible support from NGX in its listing journey, which has enabled the brand to deepen and diversify its shareholder base.

He mentioned that NGX’s strong corporate governance requirements and guidelines ensure credibility in the capital market and allow access to the general public.

He further explained that the recent public offering of MTN Nigeria launched on the Stock Exchange saw around 78% women subscribe with 80% under the age of forty-one, which shows the push for financial inclusion.

Furthermore, CEO of BUA Foods Plc, Engr Ayodele Abioye, said that listing on the Stock Exchange enables democratization and public participation, which has enhanced the credibility of the BUA brand. “Listing on NGX presents opportunities for companies to raise capital, fund business growth and implement expansion plans. In the first few weeks of our listing, our shares valued at N18 billion on the Exchange rose by 66%.

As our share price continues to stabilize, our shareholding has increased by approximately 400% since listing on the Exchange and we are beginning to see investor confidence in our business,” he added.

Regarding opportunities to improve the listing process, panellists argued that there is a need to shorten time to market and reduce transaction costs.

Sharing the optimism for the future of the capital market, it was also noted that the regulatory process has improved over the past decades with significant progress under the current administration.

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NGX remains the preferred listing platform for raising capital