United Capital buys 5% share in NGX

United Capital Group, a major investment banking and financial services group in Africa, has bought a 5 percent share in the Nigerian Exchange Group (NGX Plc).

This deal was finalized, marking an important step in the Group's long-term growth plan, according to a regulatory notice on Monday.

The purchase gives the Group a solid ownership stake in the capital market platform, NGX.

This move comes after several key achievements for the group. This includes completing the recapitalization of all its subsidiaries ahead of regulatory deadlines and recently obtaining operational licenses in Ethiopia and Rwanda.

The approval from Ethiopia makes United Capital the first foreign investment bank allowed to operate there. This is a big step in the Group's plan to grow in Africa, according to the statement.

Buying into NGX

The financial services group mentioned that NGX is a key part of Nigeria’s capital market system and supports the country's economic growth goals.

Peter Ashade, the Chief Executive Officer of United Capital Group, shared his thoughts on this development. He said the acquisition shows the Group’s trust in Nigeria’s capital markets and its commitment to help them grow.

"We have always said that United Capital is not just a participant in Nigeria’s capital markets; we are also builders. This strategic investment in NGX Plc is exactly that: we are building for impact.

“It is our vote of confidence in the leadership and strategic direction of NGX, where the capital market is headed, and our commitment to supporting the Exchange in achieving its goals.

“This strategic investment is consistent with United Capital’s broader vision of creating sustainable, long-term value for its shareholders while playing an active role in advancing the ecosystems in which we operate," Mr Ashade said.

United Capital’s investment in NGX Plc shows its belief in the future of the Nigerian capital market. It also shows the Group's commitment to supporting the institutions that help develop the market, boost investor confidence, and drive economic growth.

The company believes this investment will allow it to play a meaningful role in the future of Nigeria’s financial system.

United Capital is expanding in 12 countries across West, East, and Central Africa. They offer services in investment banking, asset management, securities trading, and wealth management.

The group says it is in a good position to use this equity stake to benefit both the company and the larger market.

According to the company, NGX Group plays a key role in managing capital allocation, improving market efficiency, and supporting economic growth by fostering capital formation and market development.

Through this investment, United Capital plans to strengthen its commitment to the steady growth of the market while also getting involved in the next stage of the Exchange’s development.