How Listing on the NGX Can Help Profitable Businesses Raise Capital

If your business consistently makes about ₦100 million in annual profit before debt servicing, a stock-exchange listing could help you raise capital and reduce costly borrowing. Depending on its earnings, growth outlook and governance, the business may attract a valuation in the billions of naira. For example, a company owing ₦500 million at 15% interest pays about ₦75 million yearly in interest. Selling part of the business through a public offering could raise funds to clear that debt and provide fresh capital for expansion. However, a valuation or successful public offer is never guaranteed. Investors will assess audited accounts, cash flow, corporate governance, market conditions, growth prospects and the company’s ability to deliver returns. Business owners should seek professional financial and legal advice before pursuing an NGX listing.

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