Since the revision of listing rules to include startups, the Nigerian Exchange (NGX) has struggled to attract startups to its platform.
Earlier this year, the CEO of NGX, Jude Chiemeka, mentioned that a few startups were considering listing on the exchange.
The startup-starved NGX is poised for a breakthrough as Tizeti, a Y Combinator-backed internet service provider, is planning to go public. This comes two years after Tizeti initially announced its intention to become a publicly traded company.
Listing on the NGX will help Tizeti access more investors, raise funds in naira, and reduce the pressure to deliver high returns due to naira devaluation.
The company—which reportedly has generated over $7.8 million in revenue—will be the first Nigerian startup to list on the NGX. “We have started that journey but are focused now on the launch of our fibre broadband service. We will share more information on the IPO shortly,” Temitope Osunrinde, Vice President for Marketing at Tizeti Networks told without sharing the timeline for the IPO.
Many Nigerian startups are reluctant to list on the NGX, citing inefficiencies in the marketplace for raising capital despite its great run in 2023. Some African startups opt to list on foreign exchanges such as the New York Stock Exchange or NASDAQ despite the higher cost of listing. This preference is attributed to access to a broader investor base, global visibility and better automation that makes it easier to manage listings and transactions. However, these ventures have yielded limited success stories.
