Governments and corporates have raised about N1 trillion across the various asset classes of the Nigerian Stock Exchange (NSE) between January and October, between January and October, the Divisional Head, Listings Business, NSE, Mr. Olumide Bolumole, has said.
He disclosed this at a webinar hosted by the exchange in collaboration with Odu’a Chambers of Commerce and Industry on Wednesday in Lagos.
The themed: “Capital Raising in a Pandemic,” the vent was held in furtherance of the NSE’s commitment to educating business promoters on the alternative funding opportunities available in the capital market to catalyse business growth. This comes on the back of the significant reduction in major sources of revenue for key sectors of the economy occasioned by the COVID-19 pandemic and other macroeconomic issues which have negatively impacted business across various industries and highlighted the need for capital raising opportunities.
According to Bolumole, the NSE as a platform for capital formation has products and services to support capital raising across economic sectors, adding that the NSE continues to deliver on its promise to provide a platform for issuers and investors to meet their financial objectives even in the most difficult times.
” For instance, despite the impact of COVID -19, the NSE has facilitated needed financing with about N1 trillion in capital raised by governments and corporates between January and October across various asset classes. With the All Share Index as at the 9th of November appreciating by over 20 per cent since the start of the year and the fixed Income market capitalisation currently over N17 trillion, the market has depth to accommodate required capital,” he said.
Also speaking, the Head of Department, Branch Network, NSE, Mr. Adeyemi Osoba, shed some more light on the NSE Growth Board as a viable option for capital raising, especially for Small and Medium Sized Enterprises.
“The Growth Board was launched in January 2020 as part of the NSE’s initiatives to elevate the Nigerian Capital market and meet the needs of businesses at every phase of their lifecycle. It provides a platform for fast-growing companies to access cost-effective, long-term capital while enjoying relaxed entry criteria, reduced post-listing obligations and a wide range of value added services,” he said.
In his keynote address, the National Vice President, The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, expressed the association’s support of the Growth Board and encouraged SMEs to take advantage of the exchange’s platform to access the right-sized capital required to scale their businesses.