IPO window reopens for mid-cap tech, Sikiru tells investors

The initial public offering market is buzzing again as mid-cap technology companies test the waters after a long listing drought, with bankers dusting off prospectuses and timetables. Financial expert Sikiru Ayoola said the opening could now reward disciplined operators who pair growth with cash generation.

“The window is open, but not wide,” Sikiru told Tribune Online,. “Companies that demonstrate resilient unit economics, clean governance, and credible paths to profitability will find bids. Those chasing hype will struggle.”

Advisers cite stabilising interest rates, improved earnings visibility, and a backlog of private rounds. Investor appetite is tilting toward enterprise software, payments infrastructure, and applied AI, where revenues are recurring and churn is low. Secondary sales to provide early liquidity are returning to term sheets, Sikiru noted.

He added that founders should prepare with rigorous audit readiness, conservative guidance and clear use of proceeds. “Investors want specifics,” he said. “Debt retirement, product expansion and selective acquisitions beat vague promises.”

Analysts caution that valuations remain below 2021 peaks and book-builds will punish overreach. Lock-up structures, free float thresholds and board independence draw closer scrutiny, especially for issuers with dual-class ambitions.

Nigeria and other African markets are part of the story, with fintech and cloud firms eyeing Lagos, London and New York listings. Currency risk, listing costs and disclosure requirements remain hurdles now, but cross-border pipelines are firming.

For investors, the rotation favours quality. Dividend prospects are limited at debut, but revenue growth and expanding margins can deliver returns as coverage initiates. For entrepreneurs, momentum offers a narrow chance to raise scale capital and set pricing benchmarks for their sector.

“Precision beats optimism,” Sikiru said. “Treat cash like inventory, keep visibility high and ship what the market will pay for.”

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