Initial Public Offering (IPO)

Last updated on
February 17, 2022

An initial public offering (IPO) is the process of selling shares of a private corporation to the general public in the form of issuing new stocks. An Initial Public Offering is a viable pathway for a company to raise capital from the general public. Because the transition from a private to a public company typically includes a share premium for current private investors, it can be an important time for private investors to fully realize gains from their investment. Also, it must be noted public investors are permitted to participate in the offering.

Companies and corporations have to meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an Initial Public Offering.

Nigerian Context

The Nigeria Exchange Group (NGX) is Nigeria's primary exchange for IPOs. The NGX is governed by the Securities and Exchange Commission (SEC) Nigeria and is licensed under the Investment and Securities Act 2007 (ISA).

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