The Nigerian Stock Exchange (NSE) has disclosed that it is putting in place the necessary structures for emerging companies with potentials for growth to participate actively in the market. To this end, the Exchange has announced that it will be launching an Alternative Securities Market (ASeM) this month. According to the NSE, the proposed ASeM platform will be a specialized board on the Exchange where small to mid-sized companies can access the capital market under less stringent rules and requirements to raise long term, low cost capital.
The Exchange is said to have embarked on the project due to her believe in the critical role emerging enterprises plays in developing economy. A release obtained from the NSE quoted, Mr. Haruna Jalo-Waziri, Executive Director, Business Development, as saying, “The Nigerian Stock Exchange is a staunch believer in the critical role of emerging enterprises in a developing economy and as such we have taken the bold move of providing a platform for sustainable growth and development of these companies. The ASeM Board will allow issuers; especially indigenous companies the opportunity to inject relatively low cost and long term capital into their businesses through flexible rules that recognize their growth potential rather than the size of operation.”
On her part, Mrs. Taba Peterside, General Manager, Listings Sales and Retention, debunked the notion in some quarters that most companies expected to list on the ASeM may not possess the necessary professional guidance and hence may fail to meet post listing requirement. According to her, to solve this kind of expected change, “Designated Advisers (DA) will be required for all companies listed on the ASeM Board of The Exchange to ensure compliance with all the requirements and obligations of the Alternative Securities Market”. She noted that the DAs will provide professional resources to qualifying companies for guidance and advice on securities-related matters.