Stakeholders in the capital market ecosystem have charted paths to address and proffer solutions to the challenges faced by issuers in raising capital in the market.
They spoke yesterday during the NGX CEO Roundtable, themed: “Creating the Enabling Ecosystem for Accessing Capital from the Nigerian Capital Markets.”
NGX CEO Roundtable is a platform that ensures continuous dialogue with key stakeholders and provides strategic solutions to economic issues for follow-up implementation by The Exchange in its capital market advocacy role.
In his opening remarks, Chairman, Nigerian Exchange Limited (NGX), Abubakar Mahmoud, said: “we convened this Roundtable with the ultimate objective of enhancing the listing experience for listed companies and providing useful insights to prospective companies.
“NGX, as Nigeria’s premier securities exchange, remains strategically positioned to support the aspirations of its stakeholders and the Nigerian economy as a whole and we believe the deliberations from the panel sessions will help us improve our operations and offerings in listings experience, market development, advocacy, and investment opportunities.”
In his keynote, Minister of Industry, Trade, and Investment, Adeniyi Adebayo, said the Federal Government is working diligently to improve the economy through diversifying the economy and strengthening institutions and structures.
“As more of our startup companies grow and mature, we must ensure that there is access to a range of financial options to support their expansion plans,” he added.
Also, Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, in a goodwill message, said as a nation faced with the burden of economic recovery as a result of the global pandemic, the capital market is an efficient, reliable solution for businesses to raise capital and for investors to grow wealth.
Ahmed, represented by the Permanent Secretary in the Ministry, Aliyu Ahmed, described the theme as apt, and will provide a deep, liquid and integrated capital market, which will deepen the alternative sources of finance and boost investors’ confidence to invest long term in the capital market.
On his part, the Director-General, Securities and Exchange Commission (SEC), Lamido Yuguda, noted that the theme resonates with the mandate of the Commission in developing and regulating the market while protecting investors.
“The Commission welcomes the sound initiatives of NGX, as it continues to engage with experts on changes that will lead to a more desired expansion of the market,” he added.
We are strengthening the value proposition for corporates to consider the capital markets as a platform for raising capital and working to ensure we are competitive when compared to options that are available to issuers.
Improving listing experience
CEO, NGX, Temi Popoola, reassured stakeholders of the Exchange’s commitment to improving issuers’ experience by providing a platform that enables companies to raise capital more efficiently whilst protecting investors.
“We are strengthening the value proposition for corporates to consider the capital markets as a platform for raising capital and working to ensure we are competitive when compared to options that are available to issuers.
“We are, therefore, actively involved in contributing to policy formulation and advocacy to ensure an enabling environment for listings, including, working with several stakeholders to ensure that the time to market and the costs for listing are optimized.”
Speaking on the benefits derived from listing on the Exchange, CEO MTN Nigeria Communications Plc, Karl Toriola, admitted that MTN has received incredible support from NGX in its listing journey, which has enabled the brand to deepen and diversify its shareholder base.
He mentioned that NGX’s corporate governance requirements and strong guidance provide credibility around the capital market and grant access to the wider public.
For the CEO, BUA Foods Plc, Ayodele Abioye, listing on the Exchange allows for democratization and public participation, which has enhanced the credibility of the BUA brand.
“Listing on NGX presents opportunities for companies to raise capital, fund business growth and implement expansion plans. In the first few weeks of our listing our shares valued at N18billion on the Exchange, increased by 66%.
“As our share prices continue to stabilize, our shareholder base has grown by about 400% since listing on the Exchange and we are beginning to see investors’ confidence in our business,” he added.
On improving the listing process, speakers stressed the need to shorten the time to market and reduce the cost of transactions noting that the regulatory process has improved over the past decades with significant progress under the current administration.
