Nigeria Securities And Exchange Commission Unveils New Guidelines For Collective Investment Scheme

As NSE lists Briclinks Africa N10m shares on Growth Board

The Securities and Exchange Commission (SEC), has released general rules for Collective Investment Schemes, prescribing that all units/securities of a collective investment scheme shall be registered by the Commission.

The rule, which is on the Commission’s website, also states that all units/securities subject to registration may be offered through the following methods: offer for subscription; offer for sale; and units/securities of a collective investment scheme may be registered by way of a shelf registration.

Shelf registration is a filing undertaken by issuers intending to access the market in the near future. It permits issuers to disclose certain information in a core disclosure document that is updated on a regular basis.

According to the Commission, in the case of Shelf Registration, some provisions shall be applicable and they include: the value of the shelf programme shall not be less than N5 billion.

An issuer may issue, offer or purchase, or make an invitation to subscribe for or purchase units under a shelf registration where at the time of the issue, offer or invitation, there is in force a shelf prospectus as updated by a supplementary shelf prospectus, both of which have been registered by the Commission.

Other provisions are that a shelf prospectus shall be subject to renewal every three years from the date of its issue. A shelf prospectus shall— comply with the general form and contents of a prospectus as set out in these rules and regulations; and state that the Shelf Prospectus has been registered by the Commission.

It shall also state that the registration of the Shelf Prospectus and Supplementary Shelf Prospectus shall not be taken to be that the Commission endorses or recommends the securities or assumes responsibility for the correctness of any statements made or opinions or reports expressed therein.

Furthermore, the shelf registration prospectus should contain a statement that no units will be allotted or issued on the basis of the Shelf prospectus read together with any supplementary shelf prospectus later than three years after the date of the issue of the Shelf Prospectus. Other requirements are on the SEC official website.

Meanwhile, efforts by the NSE to attract SMEs to the Exchange yielded reasonable results with the listing by introduction of 10 million ordinary shares of ₦1.00 each at ₦6.26 per share in the name of Briclinks Africa Plc on the Growth Board.

According to the NSE, the listing was commemorated with a digital Closing Gong ceremony where the Chief Executive Officer, Briclinks Africa, Mohammed Buhari, had the honour of bringing the day’s trading to an end.
Speaking, the Chief Executive Officer, NSE, Oscar N. Onyema, said: “We are delighted to welcome Briclinks Africa Plc to The Exchange.

This listing is a milestone in our desire to accommodate small and medium-sized enterprises (SMEs) that hitherto have been underrepresented in public markets. It is indeed a critical step in the NSE’s efforts towards greater representation of growth companies on the bourse. With this listing, we encourage Briclinks Africa Plc as it commences life as a publicly quoted company to continue to abide by its post listing obligations whilst striving for transparency as this would ultimately create value to shareholders.”

On his part, Buhari said: “It is with great pleasure that we at Briclinks Africa Plc attend this special event to mark our listing on the Growth Board of the NSE.

We have dreamt about this day and worked towards it with effervescence right from the moment we decided to be listed on the NSE about 17 months ago. We have from this process emerged as a better entity well-tuned to corporate best practices and culture. We would like at this point to thank our Financial Advisers to the listing, Afrinvest Securities, and the NSE team for their untiring support and guidance in making this day a reality.”

Recall that in January 2020, NSE launched the Growth Board to encourage companies with high growth potential to seize the opportunity of raising long term capital and promote liquidity in the trading of their shares. The NSE Growth Board is home to McNichols Plc, Living Trust Mortgage Bank Plc, Chellarams Plc, The Initiates Plc, and now, Briclinks Africa Plc.

On the back of its achievement of all-around increased efficiency in terms of competitive pricing structures, improved turnaround time, and enhanced customer experience, The Exchange remains an attractive listing destination as current market conditions favour capital-raising activities across various asset classes.