In today's newsletter, we bring you news about
- VFD's plans to list on the Nigerian stock exchange
- Paystack’s new offline payments solution.
📰 The Weekend Brief
#1 VFD Group to list on the Nigerian stock exchange
The news: VFD Group, a prominent investment firm, has received approval to list its shares on the Nigerian Exchange Limited (NGX). This move comes after the firm's exit from the NASD OTC Securities Exchange, where its shares were previously traded over the counter.
The listing on NGX is expected to enhance the company's visibility and enable it to tap into capital from the investing public through public offers or private placements.
Why it matters: The listing on NGX is part of VFD Group's strategy to raise approximately ₦32.5 billion through a combination of equity and debt, with ₦12.5 billion intended to be raised through the sale of shares to existing shareholders.
CEO Nonso Okpala expressed optimism about the listing, stating that it would provide greater access to capital markets and support the firm's strategic growth and expansion goals. VFD Group's diverse portfolio investments encompass nine sectors, including technology, finance, real estate, telecoms, and oil & gas.
This development occurs amidst a series of exits by quoted companies from the stock exchange, highlighting VFD Group's commitment to enhancing its presence in the market. The group had previously acquired a 5.2% stake in NGX in January, making it the exchange's third-largest shareholder.
Know more: VFD Group's funds under management have surged to ₦55.7 billion in the quarter ending in June, reflecting substantial growth compared to the previous quarter. The company's financial report also indicates a net profit of ₦3.5 billion for the same period, a significant increase from the preceding quarter.
The listing on NGX is expected to boost the company's visibility, attract new investors, and strengthen relationships with existing shareholders. The company's shares will begin trading on Friday.
#2. Paystack launches offline payments solution
The news: Paystack has launched its latest offering, the Paystack Virtual Terminal, designed to facilitate bank transfer payments for physical stores. This new payment system eliminates the need for traditional physical point-of-sale (PoS) devices, offering a more efficient way to confirm payments.
Why it matters: The launch of Paystack's Virtual Terminal represents the company's entry into offline payments at a time when PoS agents, bank transfers and other forms of offline payments have surged in Nigeria.
Traditional PoS terminals have been the primary alternative to cash for in-store payments. Paystack's solution aims to simplify the payment confirmation process, making it more efficient.
Know more: Paystack's Virtual Terminal allows physical stores to generate individual account numbers for each store attendant, serving as digital alternatives to physical POS machines. This enables attendants to verify customers' bank transfers without requiring store manager approval. Each Virtual Terminal account number grants limited access to the store's account.
The virtual terminals will aim to reduce wait times for payment confirmation and support QR code payments, foreign bank cards, and Apple Pay. Also, Paystack has collaborated with Titan Trust Bank to reduce the latency of bank transfers to less than eight seconds, ensuring swift payment confirmation.
👀 What else happened?
- Kenya joined the Pan African Payments and Settlement System: Kenyan companies will now be able to trade with fellow African member states using their local currency, a major boost for the African Continental Free Trade Area
- Stitch secured a $25 million Series A extension: The South African payments startup will use the new funding to further develop its suite of products and expand operations to other countries.
- Bosun Tijani unveiled his digital economy blueprint: Three million tech jobs and the formulation of a National AI strategy are the flagships of Bosun Tijani's blueprint for Nigeria's digital economy spanning five interconnected pillars: knowledge, policy & infrastructure, innovation, entrepreneurship & capital, and trade.
- Stears transitioned from B2C to B2B: Stears will no longer offer its data product to individual subscribers but to organisations with a licence to access these new intelligence solutions.
- For Health tech founders: The Halcyon Fellowship has opened applications for founders at the MVP stage building innovative solutions in healthcare Apply by October 21, 2023.
- Become the next YC-backed startup: Y Combinator is accepting applications from startups for the Winter 2024 funding cycle. The deadline for on-time applications is October 13
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