By Dipo Olowookere
On Wednesday, January 29, 2020, the Nigerian Stock Exchange (NSE) will formally launch a Growth Board, a platform aimed to provide an avenue for Small and Medium Enterprises (SMEs) and start-up firms to source for funds and probably join the main board of the exchange.
Business Post reports that rules for listing on the Growth Board have already been approved by the Securities and Exchange Commission (SEC) and on Wednesday, the platform would be officially launched.
Business Post confirmed that the event will take place at the exchange by 11am. The Growth Board is intended to act as a vehicle to attract fast growing issuers to list on the NSE, increase overall market capitalisation and order flow in line with the bourse’s strategic objectives.
It was created to cater to the growing needs of start-ups, provide exit opportunities for investors and reduced the cost of funding.
The NSE, through the Growth Board, aims to provide a platform for greater global visibility for eligible Nigerian entities and foreign companies, which will engender global capital flows.
According to the NSE rules for listing on the Growth Board, the entry segment is the board’s platform for listing eligible entities, and financing start-ups and SMEs with market capitalisation between N50 million and N500 million.
For the Standard Segment, it is the platform for listing eligible entities, and financing medium-size businesses with market capitalisation between N500 million and N4 billion or such other amount as may be approved by the exchange from time to time.
In the rules, the National Council of the exchange may authorise the listing of an applicant’s securities on the Entry Segment if the issuer satisfies some requirements.
To remain on the Growth Board’s Entry and Standard Segments, an issuer’s continued eligibility shall be evaluated by the exchange annually in line with all the criteria set out in these Rules as amended from time to time, provided that each Issuer shall comply with all other continuing listing obligations as specified under the Listings Rules of the exchange, including but not limited to submission of quarterly and annual financial statements.
View the full rules HERE
