Diversified fintech group – Escrow Group, has partnered the Nairobi Securities Exchange (NSE) in developing the Unquoted Securities Platform (USP) which allows non-listed firms raise capital in a transparent manner in Kenya.
Escrow provided the technology needed for the successful implementation of the USP on the exchange. Speaking during the launch yesterday, Escrow Group chief executive officer Collen Tapfumaneyi, indicated the group has technology solutions running across 10 African countries as well as one country in Asia.
“In Kenya, Escrow’s solutions have managed several securities registers; IPOs (Initial Public Offering), dividend payments with M-Akiba being the most notable. It is an honour to be a partner in the transformation of the Kenya Capital Market spearheaded by the NSE.
“With an emerging OTC markets in Africa and numerous inefficiencies and challenges posed by the manual aspects of the previous operation, the NSE services of Escrow Group as a technical partner to automate the Unquoted Securities Platform solution.
“Having reviewed this opportunity we partnered with the NSE in delivering a platform that unlocks value for the unquoted companies. The core composition of the contributions we are delivering through the USP Platform include an efficient platform with total automation and Straight Through Processing, value for money with a cost-effective solution, appropriate and fit for purpose technology, convenience through a user friendly design and inclusivity based on online access,” he said.
Headquartered in Mauritius, the Escrow Group is a diversified fintech group offering securities trading & settlement solutions and registry solutions and alternative banking solutions with offices in Kenya, Zimbabwe and Zambia.
The USP offers issuers an opportunity to access the capital markets for long term funding through private placements whilst enjoying flexibility in listing requirements and obligations. This enables companies that are not listed on the primary bourse but have a register of shareholders to enjoy price discovery and increase liquidity of their shares in a transparent manner.
Commenting on the launch, NSE chief executive officer Geoffrey Odundo, said: “The launch of the USP is a testament of our continued commitment to connect capital with opportunities as anchored in our 2020-2024 strategic plan. The launch offers unlisted firms an opportunity to raise capital, expand and list on the respective segments at the Exchange.”
“We remain dedicated to ensuring ethical market practices are maintained on the platform. As such, the NSE will conduct surveillance on all transactions or specific activities as it deems necessary,” he added.
The platform will enable unlisted commercial banks, cooperative societies and private companies access the benefits of an efficient over the counter market anchored on leading technology capabilities and resources.