Nigerian Stock Exchange Takes Public Offerings Online With X-PO Platform
The Nigerian Stock Exchange (NSE) has launched a new online platform for subscription of public offerings (POs) after a ‘No Objection’ letter was received from the Securities and Exchange Commission (SEC).
The new platform called X-PO is the first end-to-end online public offerings platform in Africa and designed to improve the experiences of stakeholders in the public offerings value chain by providing a more smarter and effective way of managing public offers in the Nigerian capital market.
According to the Exchange, the X-PO is a self-service portal that allows investors to conveniently subscribe and make payments for public offers through mobile (USSD) and the web. This new platform reduces the usual hassle attached to physical completion and submission of public offerings applications forms and going to the bank for payment.
Commenting on the X-PO platform Mr. Oscar N. Onyema, OON, the Chief Executive Officer, NSE, said, “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 Nigerian Stock Exchange will continue to innovate and adopt new technologies that will not only help businesses improve operational efficiency but also enhance corporate governance.
“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,” Mr. Onyema further stated.
He added that investors, registrars, issuing houses, brokers, banks, and regulators within the Nigerian capital market space can expect to enjoy a wide range of benefits from the new X-PO platform.