Following the update of listing regulations to accommodate startups, the Nigerian Exchange (NGX) has faced challenges in attracting startups to its platform.
Recently, NGX CEO Jude Chiemeka mentioned that some startups were contemplating the idea of being listed on the exchange.
Tizeti, a Y Combinator-backed internet service provider, is planning to go public on the NGX. This decision comes after Tizeti’s previous announcement of its intention to become a publicly traded company.
By listing on the NGX, Tizeti aims to access more investors, raise funds in naira, and alleviate the pressure of delivering high returns due to naira devaluation.
Reportedly generating over $7.8 million in revenue, Tizeti will become the first Nigerian startup to be listed on the NGX. The company’s Vice President for Marketing, Temitope Osunrinde, mentioned that they are focused on launching their fibre broadband service and will provide more details on the IPO soon.
Many Nigerian startups are hesitant to list on the NGX, citing capital raising inefficiencies despite its successful run in 2023. Some African startups prefer listing on foreign exchanges like the New York Stock Exchange or NASDAQ for a broader investor base, global visibility, and better automation in managing listings and transactions, despite higher listing costs. However, these endeavors have seen limited success stories.