PalmPay Faces Criticism Over Potential Hong Kong IPO

PalmPay, a Nigeria-focused fintech company, is under scrutiny for reportedly considering an initial public offering (IPO) on the Hong Kong Stock Exchange rather than the Nigerian capital market. This potential move has sparked criticism regarding whether companies that generate significant revenue in Nigeria should list exclusively abroad, thus limiting local investor participation.

Reports indicate that PalmPay is in discussions for a funding round that could raise approximately $200 million, potentially valuing the company at over $1 billion and granting it unicorn status. However, the IPO remains under consideration, with no listing date or investment banks appointed yet.

Critics on social media have questioned the rationale behind listing abroad, suggesting a dual listing to allow local investors to benefit. Temi Popoola, Group Managing Director and CEO of Nigerian Exchange Group Plc, has urged President Bola Tinubu to support policies encouraging local listings, emphasizing that companies earning profits in Nigeria should also allow local participation in their wealth creation.