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Nigerian Exchange Group (NGX Group) Plc is planning to create opportunities for private and venture capital deals to deepen its markets. This move aims to complement the existing public primary market, allowing private companies to raise funds through the NGX Group.
Speaking at the company’s annual general meeting in Lagos, NGX Group’s Group Chief Executive Officer (GCEO), Mr Temi Popoola, highlighted the need to tap into the growing flow of private capital. This shift in strategy is in response to recent de-listings and aligns with global trends where private equity and venture capital are becoming preferred financing sources for businesses, particularly in the tech sector.
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“There is a global increase in the demand for private capital, and Nigeria is not exempted,” Popoola said. “All our unicorns, about six of them, are powered by private capital. These companies are raising significant funds without tapping into the public markets, and that’s the direction the world is going.”
The NGX is exploring ways to capture private capital flows and provide value to companies outside the traditional listing model. Popoola emphasised that the Exchange aims to position itself as a gateway for all forms of capital, not just public equity.
“We might position ourselves to provide private capital access so that NGX is not just seen as a platform for public equity but as a gateway for all forms of capital,” he said. “This is how exchanges across the world are adapting; some are seeing de-listings, but they are also landing large listings or tapping into private deals that keep market value intact.”
Key highlights from the meeting include:
– Dividend Approval: Shareholders approved a dividend of N4.4 billion, representing N2 per share for the 2024 business year.
– Financial Performance: The NGX Group reported a 157.3% surge in profit before tax and a 103.2% increase in gross earnings to N24.0 billion.
– Strategic Shift: The NGX is working closely with the Securities and Exchange Commission (SEC) to explore institutional reforms that will enhance the market’s attractiveness.
The NGX Group’s Chairman, Dr. Umaru Kwairanga, expressed confidence in the company’s mission to drive the capital market in 2024, despite broader macroeconomic challenges. He assured shareholders of the company’s commitment to redefining market infrastructure benchmarks and cultivating a resilient and inclusive financial ecosystem.
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