Introduction
In recent times, Africa has experienced significant growth in the area of technological innovation,[1] with Nigeria taking the lead as a popular hub for technology-based (“tech”) start-up investment.[2] In 2022, Nigeria’s technology space, particularly the financial technology (“Fintech”) sector reportedly received one of the most sizeable equity investments in Africa.[3] Notably, a substantial portion of these investments is attributable to venture capital and private equity financing, indicating that tech entities are yet to substantially leverage domestic securities exchanges for equity capital. With a handful of Nigerian tech start-ups listed on The New York Stock Exchange (NYSE) and NASDAQ, Inc. (NASDAQ), more needs to be done to encourage these entities to access local securities exchanges for equity capital.
In light of this, the Nigerian Exchange Limited (“NGX” or the “Exchange”), on 15 December 2022, launched its Technology Board (the “Tech Board”). With the object of promoting investment in the Nigerian tech ecosystem, the NGX issued the Rules for Listing on the Tech Board of the NGX (the “Rules”). The Rules provide regulatory directions on, inter alia, admission for listings, the standard for listings, and relevant notification requirements in relation to eligible entities listed on the Tech Board. In essence, the Tech Board seeks to integrate tech entities with high-growth potential into the mainstream capital market, providing a specialised platform for them to list their securities and raise capital on the NGX.[4]
Listing of Tech Start-ups on the NGX: Recent Developments
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