NGX spotlights SPACs as viable alternative route to public markets

In recognition of the role Special Purpose Acquisition Companies (SPACs) play in catalyzing economic growth through public markets in Nigeria and Africa, Nigerian Exchange Limited (NGX) hosted a webinar with the theme SPACs: An Alternative Route to Public Markets on Wednesday, November 17, 2021.

Speaking at the webinar, Olumide Bolumole, Divisional Head, Listings Business, NGX stated, “In recent times, SPACs have experienced a steady rise in popularity across global markets due to the increased need for investors to explore opportunities in the capital market for diversifying investments and maximizing returns.

At The Exchange, as we work towards becoming the preferred African Exchange hub, propelling innovation in a range of areas, we have identified SPACs as a timely solution to proffer an alternative route to increasing the number of listings whilst maximizing and protecting shareholders’ value. To that end, we are committed to consistent engagement with stakeholders to further deepen knowledge on SPACs for qualified investors and sponsors.”

Before the day’s deliberations, Dayo Obisan, Executive Commissioner Operations, Securities and Exchange Commission (SEC), represented by Alhassan Suleiman Sidi, Head, Securities and Investment Services, SEC, delivered his goodwill remarks. He commented, “I must commend NGX for putting this webinar together to highlight the opportunities available to the market to access financing through SPACs at a time when we need to deepen our markets. We will all agree that the collaborative efforts of stakeholders is more critical than ever if we will provide an enabling framework that will not only spur the development of SPACs, but will also aid in growing and deepening the market whilst ensuring that investors are properly protected.”

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The event featured two panel sessions, the first of which focused on the topic, Understanding SPACs: Lifecycle of a SPAC from Inception through Merger Consummation and as a Newly Public Operating Company. The session featured Partner & Co-Founder, Verod Capital, Eric Idiahi and CEO, Orango Investment Corporation, Eric V Guichard with CEO, Stanbic IBTC Capital, Funso Akere serving as panel moderator.

The second session expounded on, Legal and Regulatory Considerations for SPAC Merger Compliance and featured CEO, PenOp, Oguche Agudah (FCIB, FCS); Business Development Manager, LSEG, Suresh Akhil; and Head, Listings Analysis, Listings Regulation, NGX RegCo, Elizabeth Ekpo; with Partner, Olaniwun Ajayi, Yewande Senbore, serving as moderator.

NGX remains committed to the development of innovative capital market solutions to nurture and encourage new listings while leveraging technology to optimize our processes, improve time to market, create alternate routes to market, and further deepen liquidity within the Nigerian Capital Markets. Stakeholders can, therefore, look forward to other engagements such as this to spur activity in the market.