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Nigerian bourse launches first E2E online IPO platform in Africa

posted onJanuary 13, 2021
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The Nigerian Stock Exchange (NSE) launched last month the X-PO, an online platform for the subscription of public offerings (POs), following the “No Objection” letter received from the Securities and Exchange Commission (SEC).

The X-PO, the first end-to-end online public offerings platform in Africa, is designed to enhance the experiences of stakeholders in the public offerings value chain, by providing a smarter and efficient way to manage public offers in the Nigerian capital market. 

As a self-service portal, X-PO allows investors to conveniently subscribe and make payments for public offers through the web and mobile (USSD), avoiding the hassle of physical completion and submission of public offering applications forms and visiting the bank for payment, NSE said.

Speaking on the development, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON, noted that, “The launch of the X-PO platform reinforces The Exchange’s commitment to revolutionize stakeholders’ experience in the Nigerian capital market leveraging technology. The X-PO has been designed to enhance the efficiency of PO subscription process and operational workflow to support Issuers in raising capital and enhance the reach of POs while promoting financial inclusion and retail investors’ participation in the market. Furthermore, X-PO will accelerate the reconciliation and allotment process for POs, as well as reduce the incidence of unclaimed dividends, thereby boosting investor confidence in the capital market.”

The Exchange will continue to innovate and adapt to new technologies that will not only help companies improve operational efficiency, but also enhance corporate governance which is paramount for sustainable business operations. “The launch of the X-PO is particularly timely given the new normal occasioned by the COVID-19 pandemic. The platform’s sustainable approach affirms NSE’s commitment to deploying environmentally friendly business practices and promoting paperless public offer subscriptions. We have also taken into consideration the vital need for privacy and data protection, deploying the highest levels of security to ensure that stakeholders can enjoy a safe and secure digital public offering experience,” Mr. Onyema further stated.

Players within the capital market – investors, registrars, issuing houses, brokers, banks, and regulators – can expect to enjoy a wide range of benefits with the launch of X-PO.

The NSE, a registered company limited by guarantee, was founded in 1960 and it is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (SEC) of Nigeria, the largest economy in Africa. The Exchange is a founding member and executive committee member of the African Securities Exchanges Association (ASEA).