Nigeria’s most valuable unicorn, Flutterwave, recently reiterated its plans to take the company public via an Initial Public Offering (IPO) on the Nasdaq stock exchange in the US.
Also, earlier in the year, another Nigerian company—BUA Foods, was listed on the Nigerian Exchange (NGX).
The capital market can be extremely attractive for most companies (be it a startup or a more traditional companies).
According to the Central Bank of Nigeria (CBN), the capital market is the long-term (meaning the instruments traded mature between three years to infinity)* end of the financial market. It is where long-term funding instruments such as stocks (shares of companies), debt instruments (like bonds and debentures), currencies, etc., trade between investors, business institutions, governments, and individuals.
The most important feature of the capital market is that it is a public market. This means that companies utilising this market have access to a wider array of investors and, by extension, more capital.