• Tuesday, May 28, 2024
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NGX clears path for tech startups to list on stock exchange

Domestic, foreign portfolio equities transactions hit N346.23bn in April

The technological board of Nigeria exchange limited has released guidelines for listing the start-up tech segment and Big tech segment on Nigeria Stock Exchange (NGX).

According to the board, the rules provide issuers, sponsors, investors, and their advisors with important information about admissions, listing standards, disclosure, and notification requirements.

Technology companies with a market capitalization above N42 million are eligible for listing on the technological board platform. However, securities listed on this technological board shall be accessible to qualified institutional investors, retail investors, and high-net-worth investors.

Olumide Adesina, an economist said Tech startups hoping to list on the NG stock market must be worth at least N420 million.

“The board will be accessible to qualified institutional investors, high-net-worth and retail investors, with the push, startups with some experience in business will be able to raise additional capital to scale up,” he said.

A twitter user identified as Jonah said “This will work well for insuretechs, big tech mobility platforms whose MRR is above $100m. But I doubt if any startup can meet up. Maybe Coronation might.”

Furthermore, approval granted by the Exchange for listing of an entity’s securities on the technology board doesn’t indicate any opinion by the Exchange on that issuer’s standing or on the veracity of any information provided by the issuer, the board said.