Nigerian bourse to revise listing rules to attract tech coys

The Nigerian Exchange Group (NXG) has disclosed plans to attract tech coys to the bourse, in a bid to to revive the market.

A report by the Bird Story agency noted that the new drive was as a result of NXG’s efforts to rebrand in NASDAQ-style board to consolidate on the fast-growing internet economy created by local tech firms.

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

Bolumole said that emphasis placed on “breaking even”, for listing a firm at the bourse, is stymieing the growth potential of tech outfits.  

Recall that 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, and now consists of a holding company and three subsidiaries that cover the operations of the Nigerian Stock Exchange (NSE), its regulation and its real estate.

“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.”

It stated that despite having the fourth-largest stock market in Africa, none of Nigeria’s home-grown top startups to date have listed on the Lagos-based NSE.

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

The bill, it said, would create a new regulatory framework that should allow innovation-driven businesses to thrive. 

“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.”