NSE Revolutionises Public Offerings Subscription with Electronic Platform

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NSE Revolutionises Public Offerings Subscription with Electronic Platform

The Nigerian Stock Exchange (NSE) has announced the launch of 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.

Speaking on the development, the Chief Executive Officer, NSE, Mr. Oscar Onyema, noted that, “The launch of the X-PO platform reinforces The Exchange’s commitment to revolutionise 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,” Onyema further stated.

Corroborating him, the President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe described X-PO as one of the means to further internationalized the Nigeria’s Capital Market.

“ It represents the opening of a new vista of opportunity for capital market stakeholders as it provides the much -needed edge for the NSE to compete as a choice platform for capital raising locally and internationally. One of the major reasons issuers had always preferred to patronize the money market over the capital market is that it takes much longer to raise capital in the capital market than in the money market.The launch of the e-Ipo has the potential to cut that length of time down significantly thereby bridging the competitiveness gap.

“ The  e-Ipo platform will significantly increase retail investor participation in the market as you can now sit anywhere in the world and participate in security issuance. The cost of issuing securities in our market is likely to drop significantly as the likes of printing cost etc will likely be eliminated.This has the potential to attract more issuers big and small.I am really excited about the introduction of this much awaited innovation into the market.”, said Amolegbe.

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.

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