April 2, 2023



Nigerian Change receives SEC’s approval to checklist know-how startups

The Securities and Change Fee (SEC) has authorised the laws for itemizing on the Nigerian Change’s Know-how Board.

The principles for itemizing on the board include essential particulars about admissions, itemizing standards, disclosure necessities, and notification obligations for Issuers, sponsors, buyers, and their advisors.

Temi Popoola, CEO of NGX, remarked on the approval, “This can be a important achievement that may place the Change as an interesting location for capital formation by enterprises throughout the Know-how Sector.”

“We’re satisfied that the NGX Know-how Board would assist the itemizing of start-ups on the Change as they endeavour to fulfill their financing wants, each these created in Nigeria and people from different African nations.”

The approval comes because the Nigerian Change positions itself to take a chunk out of Nigeria’s increasing startup market, which has given delivery to 5 unicorns (firms which are nonetheless within the early phases of growth however have every been valued at the least $1 billion) and made the nation the tech hub of Africa.

In keeping with the brand new approval, each Issuer that seeks admission to the Begin-Up Tech Section of the Know-how Board shall first register its securities with the Fee, make a written software to The Change, and execute the relevant Basic Enterprise.

“Has a core investor or robust technical accomplice that has a minimal of 1 (1) yr working monitor report; Has a minimal variety of two (2) shareholders or such variety of shareholders as The Change might decide every so often; and an working monitor report of at the least twelve (12) months earlier than the date that The Change receives the Issuer’s software to checklist on the Begin-Up Tech Section.

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Additionally, it will need to have an estimated minimal market capitalization of not lower than

N420,000,000.00 however not above N42,000,000,000.00 on the date that The Change receives its software for itemizing on the Begin-Up Tech Section.

“If elevating capital on the level of itemizing, it will need to have a minimal float requirement of 5 per cent of its issued share capital or has the worth of its free float equal to or above N20,000,000.00 on the date The Change receives the Issuer’s software to checklist. Supplied that The Change might, every so often, overview and decide the free float necessities as it could deem match.

“Undertakes to make sure that its promoters or administrators retain a minimal of fifty per cent of their shares within the Problem for a minimal interval of six (6) months from the date of itemizing (Lock-Up Interval) and that they don’t immediately or not directly promote or supply to promote such securities throughout that interval, amongst many different laws.