The Securities and Exchange Commission (SEC) has approved the regulations for listing on the Nigerian Exchange’s Technology Board.
The rules for listing on the board contain crucial details about admissions, listing criteria, disclosure requirements, and notification obligations for Issuers, sponsors, investors, and their advisors.
Temi Popoola, CEO of NGX, remarked on the approval, “This is a significant achievement that will position the Exchange as an appealing location for capital formation by enterprises within the Technology Sector.”
“We are convinced that the NGX Technology Board would support the listing of start-ups on the Exchange as they endeavour to satisfy their financing needs, both those created in Nigeria and those from other African nations.”
The approval comes as the Nigerian Exchange positions itself to take a bite out of Nigeria’s expanding startup market, which has given birth to five unicorns (companies that are still in the early stages of development but have each been valued at least $1 billion) and made the country the tech hub of Africa.
According to the new approval, every Issuer that seeks admission to the Start-Up Tech Segment of the Technology Board shall first register its securities with the Commission, make a written application to The Exchange, and execute the applicable General Undertaking.
“Has a core investor or strong technical partner that has a minimum of one (1) year operating track record; Has a minimum number of two (2) shareholders or such number of shareholders as The Exchange may determine from time to time; and an operating track record of at least twelve (12) months before the date that The Exchange receives the Issuer’s application to list on the Start-Up Tech Segment.
Also, it must have an estimated minimum market capitalization of not less than
N420,000,000.00 but not above N42,000,000,000.00 on the date that The Exchange receives its application for listing on the Start-Up Tech Segment.
“If raising capital at the point of listing, it must have a minimum float requirement of five per cent of its issued share capital or has the value of its free float equal to or above N20,000,000.00 on the date The Exchange receives the Issuer’s application to list. Provided that The Exchange may, from time to time, review and determine the free float requirements as it may deem fit.
“Undertakes to ensure that its promoters or directors retain a minimum of fifty per cent of their shares in the Issue for a minimum period of six (6) months from the date of listing (Lock-Up Period) and that they do not directly or indirectly sell or offer to sell such securities during that period, among many other regulations.
