The Nigerian Stock Exchange (NSE or The Exchange) has unveiled its Growth Board for Small Medium Enterprises (SMEs).
The launching was carried out on Wednesday, 29th of January, 2020 in Lagos. It was created in step with NSE’s drive to deepen the Nigerian capital market and supply help for fast-growing corporations.
The Growth Board goals to encourage Small and Medium-Sized Enterprises of their progress section to grab the chance of elevating long run capital. Also, SMEs can leverage the NSE’s different products and services to attain their long run business targets.
About The Growth Board
Oscar N. Onyema, Chief Executive Officer, NSE in the course of the ceremony defined, “the launch of the Growth Board is a way to offer issuers, relaxed entry criteria as well as less stringent ongoing listing requirements to allow for greater accessibility to finance, global visibility and credibility through corporate disclosures.”
Stating the rationale for the initiative, Onyema, in accordance with the Nigeria Bureau of Statistics, disclosed that “SMEs have contributed about 48% of the nationwide Gross Domestic Product (GDP) within the final 5 years. They additionally account for 96% of operational companies and 84% of employment. But, regardless of these important contributions, SMEs face significant challenges, together with lack of right-sized and right-priced financing.”
Therefore, in delivering actual worth to the SME sector, the Growth Board will restructure present market segments alongside an organization’s complete lifecycle. For occasion, it should provide issuers the chance to both record on the Entry Segment or Standard Segment. The Entry Segment is for corporations with a market capitalization from N50m, whereas the opposite phase is for establishments with a market capitalization from N500m. Also, the segmentation will present various choices for buyers to take part in every firm’s progress journey.
To obtain the listed firm’s progress technique and itemizing goal, The Exchange may also be collaborating with varied strategic business companions and value-added service suppliers.
Olumide Bolumole, Head, Listings Business Division, NSE says “the Growth Board is to attract small to medium-sized companies that exhibit the potential for fast growth in their corporate earnings and are in the growth phase of their business cycle.”
Mr Onyema added “we have partnered with relevant stakeholders to design a suite of cost-effective services to give listed companies a competitive edge within their respective industries while stimulating investors’ interests through enhanced information delivery. These services include pre-listing diagnostics, Institutional Services (including audit services, financial advisory, legal advisory, corporate strategic advisory), Investor Relations, Analyst Coverage, Corporate Access and Corporate Governance.”
To conclude Onyema has invited different progress corporations on the launch and others listed within the 2019 Companies to Inspire Africa (CTIA) to hitch within the Growth Board Ecosystem. He additionally urged them to make use of the platform to attain their strategic business targets.
The Nigerian Stock Exchange
The Nigerian Stock Exchange providers is championing the event of Africa’s monetary markets. It was created in 1960 and started full operation in 1961. The NSE is licensed below the Investments and Securities Act (ISA). Also, the Securities and Exchange Commission (SEC) of Nigeria regulates its affairs.
Popularly known as NSE or The Exchange, its providers embrace; itemizing and buying and selling, licensing, market knowledge options, ancillary know-how providers and plenty of extra.
NSE is dedicated to adopting the best ranges of worldwide requirements. To help this dedication, it belongs to a lot of worldwide and regional organizations that promote the event and integration of worldwide finest practices throughout its operations.
NSE is a member of the International Organization of Securities Commissions (IOSCO), the World Federation of Exchanges (WFE). Also, a member of Sustainable Stock Exchanges (SSE) Initiative, the SIIA’s Financial Information Services Division (FISD) and the Intermarket Surveillance Group (ISG). It is a founding member and government committee member of the African Securities Exchanges Association (ASEA).
Till date, NSE has continued to satisfy the wants of its valued clients and obtain the best degree of competitiveness. It is an open, professionals and vibrant change, that connects Nigeria, Africa and the world.
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