NSE launches Growth Board to boost SMEs long-term funding

BY EMEKA EJERE

Small and medium enterprises (SMEs) finding it difficult to access public funding may henceforth have cause to smile as the Nigerian Stock Exchange (NSE) has on Wednesday launched its Growth Board to change the status quo.

SMEs face some challenges with respect to raising capital on bourse, which include: stringent listing requirements, stringent post-listing requirements and continuing obligations, listing fees, ease of exit for private equity/core investors.

Little wonder the decision of the NSE to establish the Growth Board to encourage the listing of fast-growing companies that are active in their respective sectors, and have exhibited high growth potential.

Speaking at the event, chief executive officer of NSE, Mr. Oscar Onyema, noted that with a total of 41.5 million MSMEs operating in Nigeria, the Growth Board is designed to encourage the listing of growth companies and provide them with a cost-effective platform to raise the capital needed to scale, attract investors, enhance corporate visibility and put in place a regulatory structure that fosters growth.

Mr. Onyema said the Growth Board is established as part of the NSE’s initiative to elevate the Nigerian capital market and meet the needs of businesses at every phase of their lifecycle.

He recalled that up until 2015, NSE maintained two boards – the Main Board and Alternative Securities Market (ASeM).

“The Main Board targets well-established companies with a demonstrable track record of commitment to high standards of disclosure and corporate governance, while the ASeM Board is a platform with an additional focus on small to mid-sized companies”, he said.

He speaks further: “In line with its efforts to deliver value to listed companies, the Exchange will present companies aspiring to list or are listed on the Growth Board with access to its Value Added Services program that is designed to; create competitive edge for listed companies, facilitate new listings, stimulate investors’ interest through enhanced information delivery and assist companies in complying with post-listing obligations to retain their listing status.

“Growth Board companies will enjoy the full complement of Value Added Services (Institutional Services; Investor Relations; Analyst Coverage, Corporate Access and Corporate Governance), expanded Designated Advisers, reduced NSE fee structure, reduced pre and post-listing obligations and increased turnaround time for approvals and time to market. “