Nigeria: Electronic Initial Public Offerings to Commence in Nigeria in 2019

Dec 03, 2018 | This Day; All Africa

The nation's capital market will begin to witness the issuance of electronic initial public offering from 2019.

The Acting Executive Commissioner, Corporate Services, Securities and Exchange Commission (SEC), Mr. Henry Rolands, disclosed this while speaking at the SEC Journalists Academy in Uyo, Akwa Ibom State.
 
IPO is the selling of securities to the public in the primary market by a company, while e-IPO is the selling of such shares via electronically as opposed to the usual manual issuance. Although many jurisdictions have adopted e-IPO, Rowlands said that it will become operational in Nigeria next year.
 
According to him, Nigeria must move forward with its contemporaries in technology in order to compete effectively, saying that preparations towards full automation of IPO and other public primary offers in the Nigerian market were on top gear. He noted that special-purpose committee inaugurated for the full automation of the primary issuance process has gone far to ensure commencement of E-IPO.
 
He said that the committee comprises SEC, the Nigeria Stock Exchange (NSE); Association of Issuing Houses of Nigeria (AIHN); Association of Stockbroking Houses of Nigeria (ASHON); Central Securities and Clearing System (CSCS); Institute of Capital Market Registrars (ICMR) and Capital Market Solicitor Association (CMSA), among others. Rowlands, who spoke on: "Why digitization is critical for our market- Case study: Dematerialization, e-dividend and direct cash settlement, said the full automation of primary issuance would involve automation of the process, approval, documentation, subscription and allotment of all issues, especially IPOs and public offers.
 
He noted that the initiative would enable investors to subscribe and make payment for IPOs and public offers online with such orders being matched and allotted electronically and directly to the investment accounts of the investors in CSCS. Read more from All Africa.
 
 
 
Source: All Africa