Early in February, Flutterwave CEO Olugbenga Agboola revealed that the company would only consider an IPO after it was profitable. The fact that the fintech behemoth was not yet profitable caught many people off guard. Well, it was to be anticipated for a business in its growing stage. The business has been growing quickly and obtaining permits all over Africa.
The fintech giant, which was recently valued at $3 billion, would exceed all other listed financial institutions to rank among the most valuable corporations on the NGX. The NGX’s ability to offer the kind of exit that dollar-based investors are looking for is still up for debate, though. Dual listings are typically preferred by high-growth African firms.
Since establishing its tech board in 2022, the NGX has been aggressively pursuing tech firms with advantageous listing terms, perhaps providing Flutterwave with inducements to list locally. An important victory for Nigeria’s stock market would result from Flutterwave joining Tizeti, another software company from Nigeria, in listing on the bourse if it moves forward with an NGX IPO. Other tech companies may be persuaded to list on the stock exchange by a Flutterwave listing.
The announcement of Flutterwave’s possible listing coincides with a resurgence of investor optimism toward Nigeria’s economy. According to Bloomberg, Nigeria’s sovereign risk spread has fallen to its lowest level since January 2020 as a result of a surge in bank stocks and higher capital inflow, strengthening the nation’s financial markets.
An initial public offering (IPO) makes sense for Flutterwave. The company’s choice to go public has been long-awaited because there aren’t many other options. However, just launching on the NGX might not be enough to appease its international investors. It is unclear if this is a change in the company’s long-term goals or a component of a larger dual listing plan.
Since its 2016 start, Flutterwave has grown significantly, handling over 630 million transactions totaling $31 billion in more than 35 African nations. By offering solutions to significant international clients like Uber and enabling remittances through its SendApp product, the fintech behemoth has made cross-border payments smooth. Though it is unclear if listing will happen anytime soon, the change suggests a more balanced and practical approach than the previous fervour surrounding a US IPO could have.