Nigerian bourse wants to attract tech IPOs with new listing rules

Nigeria has set in motion what could herald a new dawn for African tech startups as it moots the adoption of new listing rules to encourage tech companies to go public.

This story was contributed to TechCabal by Seth Onyango/bird

The Nigerian Exchange Group (NXG) is going on a charm offensive to attract tech unicorns to the bourse, in part to resuscitate the market after a lull in new listings.

Its pivot towards fintech firms underpins the coming of age of Africa’s tech ecosystem – now a top destination for foreign direct investment (FDI).

NXG is now setting up a NASDAQ-style board to consolidate on the fast-growing internet economy created by local tech firms.

Olumide Bolumole, division head of stock exchange listing activities at NXG revealed that the bourse will make sweeping changes to make listing attractive to tech companies.

He singled out “breaking even”, one of the current prerequisites for listing a firm at the bourse, asserting that this requirement was stymieing the growth potential of tech outfits.

NGX demutualised in 2021, taking the company private in a move that it hopes will attract greater flows of foreign and domestic investment into Nigeria’s bourse, with a renewed emphasis on corporate governance and the ability to expand into other markets and sectors.

NGX consists of a holding company and three subsidiaries that cover the operations of the Nigerian Stock Exchange (NSE), its regulation, and its real estate. This structure is similar to those of other international market groups such as the London, New York, and Johannesburg stock exchange groups.

Get the best African tech newsletters in your inbox

Nigeria and a few other African states boast unicorns – startups that have attained a market valuation of over a billion US dollars and Africa is now home to seven: Jumia Technologies, Interswitch, Flutterwave, Andela, Wave, OPay, and Chipper Cash.

Five of these became unicorns in 2021, including two in September alone, indicating the growing levels of interest in Africa’s startup market not seen before.

But despite having the fourth-largest stock market in Africa none of Nigeria’s home-grown top startups to date have been listed on the Lagos-based NSE. The proposed reforms should help tech firms tap into larger capital markets, starting at home.

According to Wee Tracker (WT), the Nigerian government is in the process of implementing the Nigerian Startup Bill (NSE).

It will create a new regulatory framework that should allow innovation-driven businesses to thrive.

“The bill also intends to address prevalent shortcomings such as insufficient digital infrastructure, tax holidays, and capital access,” WT said.

Listings for Africa’s tech firms have many benefits, including fundraising and providing a seamless exit route to investors, supervision and control of trading in securities, and fair price for the securities.

Timely disclosure of corporate information and better corporate practice are also some of the advantages of a company going public. Studies have also shown that consumers are often more willing to support listed firms.

For Nigeria, getting startups to list could help revive the country’s bourse after a three-year listing drought. In recent decades, Nigeria’s stock market capitalisation has fallen well below potential.

“In 2020, the market cap of the Johannesburg Stock Exchange (JSE) swelled to $1.05 trillion, equivalent to 235% of the country’s 301 billion US dollars GDP,” according to Wee Tracker.

While the NSE outperformed in 2020, growing by as much as 50 percent with 4.5 billion dollars in new listings, its market capitalisation of $56.6 billion – just 13.1% of the nation’s comparatively enormous $432.3 billion GDP – shows there is considerable room for growth.

If you enjoyed reading this article, please share it in your WhatsApp groups and Telegram channels.

Get the best African tech newsletters in your inbox

Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here

Related Posts
Volvo integrates YouTube and Google Home into its vehicles thumbnail

Volvo integrates YouTube and Google Home into its vehicles

Volvo će biti prvi proizvođač automobila koji će ponuditi direktnu integraciju Google Home-a u svojim automobilima. Određene funkcije moći će da se kontrolišu na daljinu preko Google Assistant-a. Kontrola preko mobilnog telefona Dvofaktorska autentifikacija je potrebna za “osetljivije komande”, kao što je otključavanje vrata. Takođe možete saznati informacije u vezi sa vašim automobilom preko Google Assistant-a. Možete omogućiti zaključavanje vrata ili…
Read More
Munich-based Kyte founders secure a further 26 million in the Valley thumbnail

Munich-based Kyte founders secure a further 26 million in the Valley

Mietwagen-Service Münchner Kyte-Gründer sichern sich weitere 26 Millionen im Valley Bekannte US-Geldgeber haben bereits in Kyte investiert. Jetzt folgen weitere, darunter auch die Flixbus-Gründer. Die Expansion nach Europa steht an. Die Münchner Ludwig Schönack, Nikolaus Volk und Francesco Wiedemann operieren mit Kyte aus den USA Sie haben ihr Mietwagen-Startup im Silicon Valley aufgebaut und planen…
Read More
Повечето рансъмуер атаки се целят в три индустрии thumbnail

Повечето рансъмуер атаки се целят в три индустрии

Рансъмуерът остава ключова заплаха за киберсигурността на организациите по целия свят(снимка: CC0 Public Domain) Преобладаващата част от атаките с криптиране и искане на откуп се целят в три индустрии, но все пак изследователите на киберсигурността предупреждават, че „нито един бизнес или индустрия не е в безопасност”. Над половината от рансъмуер атаките в последно време са…
Read More
Exclusive: Leatherback denies losing funds to little-known SDQ Facilitators thumbnail

Exclusive: Leatherback denies losing funds to little-known SDQ Facilitators

Leatherback, a cross-border payments startup, is the subject of ongoing speculation within high-level online communities of the Nigerian tech ecosystem. The UK-based company, which raised $10 million pre-seed, is backed by ZedCrest Capital and provides cross-border payment services to customers in South Africa, Egypt, Uganda, India, the UAE, and Nigeria. An unsubstantiated report making the
Read More
Scott Pilgrim Takes Off Season 2 Would Be a ‘Miracle’ thumbnail

Scott Pilgrim Takes Off Season 2 Would Be a ‘Miracle’

2 weeks ago November 22, 2023 at 7:30 am If you are a fan of Netflix’s Scott Pilgrim Takes Off, as we are, don’t hold your breath for a second season. While the show’s creators don’t think it’s completely out of the cards, a second season was never part of the plan and still isn’t.
Read More
生活費から貯金まで、「みんなの銀行」による俺のマネールーティンを見てくれ thumbnail

生活費から貯金まで、「みんなの銀行」による俺のマネールーティンを見てくれ

2022年はスマートにお金を管理しよう。お金の管理って大変ですよね。毎月生活資金を銀行に下ろしに行ったり、生活資金を用途別に分けたり、貯金用の口座に振り込んだり…。「みんなの銀行」を使えば超簡単にお金の管理ができるんです。お財布感覚で使えるWallet、お金をドラッグ&ドロップで簡単操作、目的別に貯蓄預金が作れるBox、毎月の収支がグラフでわかるRecord、これらの機能で生活資金&貯蓄用口座としての使い勝手が抜群に良い。お持ちのメインの口座から毎月の生活資金を「みんなの銀行」に入れておく。これだけで簡単に毎月の生活資金の管理と貯蓄ができちゃうんです。Video: ギズモード・ジャパン/YouTube毎日使うお金を「みんなの銀行」で管理しようギズモード編集部・綱藤による「みんなの銀行」の1ヶ月の使い方を例に見ていきましょう。先ずはメインで使っている銀行から「みんなの銀行」に生活資金を移します。普段使いする生活資金はWalletという普通預金口座で管理します。「みんなの銀行」 には、バーチャルデビットカード(※)の機能が付いているので、Apple PayやGoogle Payに登録すると、「QUICPay+」としてコンビニや自販機でのタッチ決済に利用できます。また、ネットショッピングにも利用できるので、普段の買い物は「みんなの銀行」で一括管理。 デビットカードによる買い物は、口座残高の範囲内での利用になるので、使い過ぎの心配も不要です。支払い後の残高も、アプリですぐに確認できて便利。 ※デビットカード発行には所定の審査があります。 金利0.03%のBoxで目的別に貯蓄「みんなの銀行」にはBoxという貯蓄預金口座があります。最大20個も作れるので目的別に貯金ができるんです。欲しい物のための購入資金にしたり、海外旅行のための資金にしたり。すぐ使う予定のないお金はとりあえずBoxに移動しちゃいましょう、何故ならWalletは金利が0.001%ですが、Boxは金利0.03%(※)なんです。普通の銀行だと定期預金口座に入れないと金利が上がりませんが、「みんなの銀行」はWalletからBoxにドラッグ&ドロップで移動するだけで金利が上がるんですね。普段使いする生活資金はWalletで管理、貯金は用途ごとのBoxで管理という感じで棲み分けができます。 ※詳細は、みんなの銀行ウェブサイトにてご確認ください。 Recordで月の収支や他行の口座をチェックRecordを使えば入出金の履歴や買い物の引き落とし履歴がグラフで見れるんです。支出が多かった月なんかが一目で分かります。しかも!登録すると他の銀行口座の情報も表示できます。「みんなの銀行」で全ての口座情報はもちろん、クレジットカード・電子マネーの残高や明細が確認できちゃうんです。これはめちゃくちゃ便利。無駄遣いを減らすにはお金の流れを把握することが大事ですからね。今ならギズモード専用初回特典コード付き今回特別に、ギズモード専用初回特典コードが付いてます。アプリストアからみんなの銀行アプリ(App Store/Google Play)をダウンロードして、新規口座開設の際にこちらのコードを入れていただくと必ず1,500円もらえます。最短翌日に、貯蓄預金(Saving)に入金されます。 ギズモード専用初回特典コード口座開設の際に下記の初回特典コードを入力して下さい。初回特典コード:wMAmRxLX ※初回特典コードの特典額(1,500円)は、変更となる場合があります。予めご了承ください。 ※本企画および初回特典コードは、予算が上限に達した等の場合、予告なく変更または中止する場合がございます。※初回特典コードは2022年3月31日まで有効です。※最新の情報は、みんなの銀行ウェブサイトをご確認ください。 さらに口座開設後に「みんなの銀行」を紹介すると、紹介した側、紹介された側どちらも1,500円がもらえる「お友だち紹介プログラム」もあります。ドラッグ&ドロップでお金を仕分けできる直感的な操作感やデジタルバンクならではの使い勝手の良さを是非体験してみて下さい。Source: みんなの銀行
Read More
Index Of News
Total
0
Share