NASD OTC Securities Exchange Plc has signed a Memorandum of Understanding with four business incubators that will groom enterprises so that they (enterprise) can attract investors and possibly approach the capital market to raise funds.
The four incubating companies are Fate Foundation, Tony Elumelu Foundation, Bank of Industry and the Enterprise Development Centre of the Pan African University.
The NASD OTC is looking to sign the same MoU with other incubator groups, the Managing Director/Chief Executive Officer of the Exchange. Bola Ajomale, told newsmen in Lagos at a stakeholders forum.
The Exchange is looking at working with the enterprises under the incubators with an intent to introduce them to the capital market. “We believe that the capital market should be able to cater to all forms of enterprise and not only Public Liability Companies. These are companies that are at pre-Plc stage and they are now looking for investors to raise capital, and we are giving them the alternatives or options that are available to them outside of going to borrow money from the bank,” Ajomale explained.
The NASD OTC met with entrepreneurs who had groomed their businesses to various stages and were ready to access funds from other investors. He said the arrangement would be done on the NASD OTC platform as it is an Exchange that accommodates enterprises of diverse pedigrees.
To facilitate this, he said, “We are established the NASDeP (NASD Enterprise Portal), which would take in the enterprises and place them strategically so that any private equity investor or any venture capital investors, who is looking for investment opportunities, can see them, inquire of them and invest.”
“NASDeP is an information repository that allows transparency and massive exploration of companies not yet listed in the Exchanges. The enterprise are not in for initial public offers, but are open to private equity investors, which is what the portal is intended to achieve. This is believe to be the first stage of capital raising before other options,” the NASD boss explained.
Ajomale, who spoke at the Enterprise Development Centre 2018 Investment Readiness Series, said the NASD’s vision of introducing small businesses to alternative finance option in the capital market aligned with the Nigerian Investment Promotion Commission’s objective of ensuring information availability about investment opportunities in Nigeria.