NSE Set To Launch Growth Board For Nigerian SMEs, Others

The Nigerian Stock Exchange (NSE) has said it will launch its Growth Board which will provide  ‘high-growth’ companies and  Small and Medium Enterprises (SMEs) interested in issuing shares on the exchange the opportunity to raise long term capital and facilitate liquidity in the trading of their shares.

The statement dated 28 January 2020, and published on its website Wednesday, states that the initiative is part of the effort of the NSE to “elevate the capital market and meet the needs of businesses at every face of their life cycle.”

The NSE expressed its intention to support the over 41.5 million SMEs in the country through the launch of the ‘Growth Board’, stating that the board is “designed to encourage the listing of companies and provide them with cost effective platforms to raise the needed capital” for growth and also help the SMEs attract investors.

Reacting, Mr Olumide Bolumole, Head, Listings Business Division said, “The launch of the NSE Growth Board further re-affirms NSE’s long-standing tradition of supporting the development of SMEs in Nigeria by offering entrepreneurs opportunities to access finance and scale their businesses. 

“The Growth Board is expected to attract small to medium-sized companies that exhibit the potential for fast growth in their corporate earnings and are in the growth phase of their business cycle. 

“It will also offer investors the opportunity to invest in such companies with potential for high returns/capital gains.”The Exchange said it will present companies who are interested in trading their shares on the floor of the exchange with the necessary value-added services program to create competitive advantage for the firms.The program will also assist them through the enhancement of information delivery, as it will help the companies with post listing requirements to retain their status to trade on the NSE.