Food
Users who attempted accessing the IPO required to social networks to report issues visiting, slow-loading apps, mistake messages and trouble accessing the deal. Bamboo and Cowrywise acknowledged the interruption on X, both stating they were working to bring back access to their platforms.
Monday’s interruption revealed the space in between the need the platforms anticipated and the traffic they eventually needed to soak up. The deal was pitched as the ‘individuals’s IPO’ to reach normal Nigerians through their phones, and the platforms authorized to offer it invested months making that case to their consumers. On the day, they locked those exact same consumers out of the buzz they had actually developed.
In the week leading up to the IPO, Bamboo opened over 236,000 brand-new accounts, with 64% of the accounts– 152,000– financed and trading within the very same week, revealing the suppressed need for shares in Dangote’s refinery, the business stated in a declaration sent out to TechCabal. The seven-day figure beat the start-up’s finest month for signups, May, when 172,000 brand-new accounts registered.
“We’re truly dissatisfied and unfortunate that we aren’t providing our neighborhood the user experience that we’re understood for,” a Bamboo representative informed TechCabal. “Our engineering group is repairing the platform as we speak. We expected a big wave of need and ready our systems appropriately over the last 2-3 months, however eventually that did not occur, and we’re ensuring this never ever occurs once again.”
While Bamboo races to bring its app back online, Cowrywise informed TechCabal its engineering group has actually restored its app.
“As prepared for, the IPO launch created a substantial rise in traffic today, which led to some slower-than-usual reaction times for about an hour, after which complete was brought back,” a Cowrywise representative stated. “The deal window for the IPO stays open up until October 13, and consumers who experienced problems can retry their membership straight on the app now.”
While it might provide little relief to the users of both platforms, they still have a month to purchase shares in the refinery. “In the case of oversubscription, which was extremely expected, shares will be designated on a professional rata basis,” Bamboo informed TechCabal. “For users who do not get a complete allowance, they will be reimbursed for the shares that were not gotten.”
Food Why the rush?
In September, Dangote Petroleum Refinery revealed that Nigerians can take part in its 2.15 trillion ($1.6 billion) IPO through a network of authorized fintechs, consisting of Bamboo, Cowrywise, Flutterwave, Moniepoint, Paga, PiggyVest and others, along with banks and mobile-money operators.
The deal opened on September 14, with 4.1 billion shares readily available at 525 ($0.40) each and a minimum membership of 10 shares. The minimum buy is 10 shares, or 5,250 ($4). That low entry rate brought a wave of newbie financiers through the door on the first day.
The IPO is anticipated to raise cash to money the refinery’s growth and increase its crude-processing capability from about 700,000 barrels everyday to 1.4 million barrels daily. When the deal lastly opened, the enjoyment equated into an abrupt rise of traffic.
Cowryrise stated it had actually expected substantial interest in the IPO and scaled its facilities ahead of the launch, however the volume of demands on Monday early morning surpassed what it had actually gotten ready for.
“We will continue to increase capability as might be needed,”the business informed TechCabal.” We’re positive in our capability to support ongoing need through the rest of the deal duration.”
The interruptions raise concerns about whether fintechs were effectively gotten ready for the need produced by an IPO they had actually invested weeks promoting to their clients. Bamboo stated it had actually invested the previous 2 to 3 months preparing its systems for the anticipated boost in need, however the preparations failed.
The business stated it had actually seen a 350% boost in brand-new users ahead of the IPO and had actually anticipated its facilities to deal with the rise based upon how it had actually carried out throughout previous rises in NGX activity.
“We were positive about offering our users a trusted experience based upon how our systems dealt with a rise in brand-new NGX users in the past,” the business informed TechCabal. “But eventually that did not take place, and we’re making certain this never ever occurs once again.”
The downtime might not suggest financiers have actually missed their possibility to purchase the shares. Bamboo stated IPO shares will not be designated on a first-come, first-served basis, indicating financiers who subscribe later on throughout the deal duration will not be disadvantaged.
If the IPO is oversubscribed, shares will be designated on a pro-rata basis, suggesting each financier will get a part of the shares they obtained based upon the overall need for the deal. Financiers who get less shares than they subscribed for will be reimbursed for the unallocated part.
“We do not anticipate that everybody will wish to purchase IPO shares today,” Bamboo stated. “We anticipate lots of financiers to purchase completion of the month when they get income in addition to completion of the IPO on October 13.”
With the deal now open, Nigerians on X are rushing for options, trying to find other authorized platforms through which they can subscribe before the October 13 due date.
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