The share price of the latest company to list on Nigerian Exchange (NGX) soared by up to 77% in the first two weeks following its listing, but has since consolidated some of its gains.
Legend Internet Plc listed 2 billion shares on the NGX on 24 April at a price of NGN 5.64 ($0.35) each, adding some NHN 11.3bn ($7m) to the market capitalization of the Nigerian Exchange (NGX), according to this press release. Since then it has climbed on many of the trading days and it reached NGN 10.00, up 77%, on 7 May. The closing price yesterday (15 May) was NGN 8.40 per share.
The listing was by introduction, meaning no new capital was raised and no new shares were issued. The company did not immediately meet the listing requirement of 20% free float of shares available for trading and the exchange gave Legend two weeks after the listing to meet the requirement. The internet company announced on 6 May that it had since managed to sell shares to 106 new shareholders and expanded its share register enough to meet the requirement for 20% free float of shares, according to a statement filed at the NGX and reported on Nairametrics.
Legend is a fast-growing Nigerian firm which provides last-mile fibre ICT solutions (with a focus on fibre-to-the-home) and tech-driven digital services. It is seeking to expand into new services (according to this article on Nairametrics) and wants to offer customers a full digital lifestyle with products such as LegendMail (an email with built-in payments), Legend Pay (a digital wallet), MailPay and MyLegend app.
“World-class infrastructure and made-in-Nigeria innovation”
Speaking at a presentation, Aisha Abdulaziz, CEO of Legend, said: “We are building Africa’s most customer-focused internet company powered by world-class infrastructure and made-in-Nigeria innovation. Going public enables more Nigerians to be part of our journey and share in the value we are creating. This is not just a corporate win; it’s a signal of what’s possible in Nigeria’s tech ecosystem.”
She added “We are unlocking new growth opportunities — not just for Legend, but for Nigeria’s digital economy at large.”
Temi Popoola, Group Managing Director/CEO of NGX Group emphasised the importance of broadband infrastructure in driving digital growth: “Broadband is investment-heavy and capital intensive, and the listing of Legend Internet Plc comes at a pivotal time. As we deepen our digital economy, NGX’s market infrastructure stands ready to support capital mobilisation for sectors that require long-term funding. Legend’s entry into the market is not only timely, it’s visionary.”
Jude Chiemeka, CEO of the Nigerian Exchange Limited (NGX) said: “Legend’s listing highlights the strategic role of NGX in supporting corporate innovation and growth. This is more than just a corporate milestone, it is a turning point for the tech sector. We are proud to provide a platform that enables indigenous technology firms to scale and create sustainable value.”
Sales edge down, gross margin soars
The company also issued its financials to 31 July 2024. According to this report on Nairametrics website. This said that sales revenue has been falling for the previous three years at an average rate (compound rate) of 3.3% a year, despite the new services offered. However expenses (cost of sales) declined by 21% in 2024, compared to a year earlier, which had improved gross margin to 59.5% and gross profit rose by 8.6%. Operating profit was up 2.4% but profit before tax was NGN 285m, but tax liabilities meant that profit after tax was down 50% to NGN 119m.
Debt is only 11% of the assets on the balance sheet, so the company has opportunities to borrow or raise funds for future expansion. Being listed on the NGX will increase the company’s profile and make it easier to raise capital in future.
Capital markets for tech companies
On 12 May Ms. Chalya Shagayathe, Senior Special Assistant to the President on Entrepreneurship Development in Communications, Innovation and Digital Economy, visited Legend and commended it on the successful listing, according to this report on Mondovisione. She said that this listing by an Internet telecom operator reflects strong investor confidence in Nigeria’s digital economy: “The listing of Legend Internet Plc is not just a corporate achievement, it is a national win… It sends a powerful message to indigenous digital and tech companies that the capital markets are within reach.”
She also commended the company on its inclusivity, noting that the majority of Legend’s executive and senior staff are women. President Bola Ahmed Tinubu has launched the Renewed Hope Agenda to build a business-friendly environment driven by digital transformation and inclusive economic growth.
On 16 May Punch news and others reported that Legend Internet had signed a memorandum of understanding with Chinese tech firm Huawei and would offer Fibre-to-the-Room (FTTR) connections.
Note: The free float measures the shares available for public trading (not including shares held by promoters, directors, strategic investors and government entities) as a percentage of the total shares issued and listed. The NGX free float requirement aims to promote fair trading and protect investors by ensuring the company’s shares can be actively traded and there is liquidity and marketability.