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How Your Business Can Benefit From The Nigerian Stock Exchange’s Growth Board

Ikenna Nwachukwu
  On 29 January 2020, the Nigerian Stock Exchange launched the Growth Board for high growth enterprises. The platform allows SMEs to list on the exchange, gain global exposure, and raise long term capital from investors- much like the large corporations whose shares are traded on the course. This initiative is aimed at supporting businesses at various stages of growth and enabling them to drive further expansion. It’s particularly targeted at technology startups and companies in other sectors that have demonstrated the potential for fast growth in recent times. 
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What the NSE’s Growth Board Aims to Achieve
  1. Help medium-sized businesses raise capital and maintain liquidity.
  2. Allow businesses from a broad spectrum of sectors to get listed.
  3. Provide a pool of potential companies that may get listed on the NSE.
What Businesses Benefit from the Growth Board
  1. Value-added services such as investor relations and corporate governance.
  2. Access to cheap long term capital and greater visibility.
  3. A broader investor base for medium-sized businesses, attracting both local and international investors.
  4. Lower NSE fees. 
  5. An exit option for core or private equity investors.
Eligibility Criteria The Growth Board of the NSE is split into two portions: the Entry Segment and Standard Segment. The eligibility requirements differ according to the portion being applied to. Businesses seeking to join either the Entry or Standard Segment should meet these criteria:
  1. Should be listed on the Main or Alternative Securities Boards of the Nigerian Stock Exchange.
  2. Must have been in operation for at least two years.
  3. Has audited financial records that comply with International Financial Reporting Standards (IFRS).
  4. Must have grown its revenues at least 20% cumulatively in over the last two years. 
New businesses that have not listed with the main or alternative securities boards of the NSE (see criteria 1) are eligible for the Entry Segment if they meet certain conditions: 
Find our comprehensive listings of businesses in Nigeria here
How to List on the Growth Board
  1. After your company has decided to list on the Growth Board, you may contact a Designated Adviser of the NSE to inform them of the decision to list. 
  2. Your company’s board passes resolutions regarding the impending listing and mandates the Designated Adviser (DA) to submit your application to the NSE.
  3. The DA submits your application along with a cover letter and the NSE application fees. The application should include a prospectus, which contains such details as historical financials, financial forecasts, application forms, application instructions, and contact information, among others.  
  4. Convene a Completion Board Meeting, with all parties to the listing in attendance. At the end of the meeting, all parties, including the company’s directors, will sign the prospectus.
  5. Submit copies of applications (50 summarized copies and 25 hardcover copies) to the NSE; the exchange will distribute these to its branches and council members. 
  6. Your company signs a declaration of compliance with post-listing requirements.
  7. Your company’s shares will now be admitted into the Daily Official List for trading. This completes the listing process.     
To find out more about the Growth Board of the Nigerian Stock Exchange, click here. Featured image source: African Market
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