The Nigerian Stock Exchange (NSE), on Tuesday, announced the launch of an online platform for the subscription of public offerings (POs) tagged X-PO, on Friday, December 18, 2020.
This, the exchange said in a statement, followed the “No Objection” letter received from the Securities and Exchange Commission (SEC).
The X-PO, the first end-to-end online public offerings platform in Africa, according to the statement, is designed to enhance the experiences of stakeholders in the public offerings value chain, by providing a smarter and efficient way to manage public offers in the Nigerian capital market.
As a self-service portal, X-PO allows investors to conveniently subscribe and make payments for public offers through the web and mobile (USSD), avoiding the hassle of physical completion and submission of public offering applications forms and visiting the bank for payment.
With the novel platform, the NSE said capital market stakeholders, including investors, registrars, issuing houses, brokers, banks and regulators, should expect to enjoy a wide range of benefits with the launch of X-PO.
Commenting on the development, NSE’s Chief Executive, Oscar Onyema, said the launch of the “platform reinforces the Exchange’s commitment to revolutionise stakeholders’ experience in the Nigerian capital market leveraging technology.
“The X-PO has been designed to enhance the efficiency of PO subscription process and operational workflow to support Issuers in raising capital and enhance the reach of POs while promoting financial inclusion and retail investors’ participation in the market.
“Furthermore, X-PO will accelerate the reconciliation and allotment process for POs, as well as reduce the incidence of unclaimed dividends, thereby boosting investor confidence in the capital market,” he stressed.
The Exchange promised to continue innovating and adapting to new technologies that will not only help companies improve operational efficiency, but also enhance corporate governance which is paramount for sustainable business operations.
“The launch of the X-PO is particularly timely given the new normal occasioned by the COVID-19 pandemic. The platform’s sustainable approach affirms NSE’s commitment to deploying environmentally friendly business practices and promoting paperless public offer subscriptions.
“We have also taken into consideration the vital need for privacy and data protection, deploying the highest levels of security to ensure that stakeholders can enjoy a safe and secure digital public offering experience,” Onyema stressed further.