MTN Nigeria will boost the market cap of the Nigerian equities market by N1.836 trillion, which is about R71 billion, as the company, today, listed its shares on the premium board of the stock exchange. This is the first time a company will be listing directly on the premium board of the NSE.
The listing will automatically increase the total market value of all quoted equities at the NSE from the opening value of N10.627 trillion to N12.463 trillion.
The company registered a total of 20.35 billion ordinary shares of 2.0 kobo at a price of N90 per share. This bestows on the telco an initial entry capitalisation of N1.836 trillion. However, by listing by introduction, MTN Nigeria’s existing shares will be admitted to the Daily Official List of the Exchange for trading.
Here Are Few Things To Know About This Historic Event At The Stock Exchange.
- Listing by introduction means that the shares of existing MTN Nigeria shareholders will be listed without an additional public sale of shares. From this point, all existing MTN Nigeria shareholders will be free to trade their shares on the NSE.
- In the short term, existing shareholders will be the ones to basically drive trading on MTN Nigeria. The shareholding structure at the time of listing will be 78.8% by the MTN Group and 19.4% by Nigerians.
MTN Nigeria had in 2016 appointed an advisory team that included Stanbic IBTC Capital Limited and its affiliates, Standard Bank of South Africa Limited and Standard Advisory London Limited and the Citigroup Global Markets Limited as the joint transaction advisors and joint global coordinators for the proposed listing of MTN Nigeria on the NSE. This advisory team will set out a roadmap towards listing on the Nigerian Stock Exchange.
It should be remembered that as part of the conditions to settle its $3.4 billion fine by the Nigerian Communications Commission (NCC), MTN Nigeria had declared its intent to list its shares on the NSE as soon as legally and commercially possible.
- MTN stocks can only be bought or sold by retail and institutional investors or stockbrokers who have Central Securities Clearing System (CSCS) accounts with a registered stockbroker. You cannot buy MTN shares if you do not have a stock brokerage license.
- The company in its latest investors conference said it reports a return on equity of about 90%. This means the company makes a profit of N90 for every equity of N100 it invests.
Analysts believe that, this is just the start, hoping to pursue an imminent public offer giving more Nigerians greater access to the MTN opportunity.
Facts About MTN Nigeria Group.
- Leading emerging markets operator with 237 million subscribers.
- Largest market share in 14 countries.
- Largest Mobile Operator in Nigeria with 60.3 million subscribers.
- 20.4 million active data users.
- 50% market share by revenue.
- Largest fibre network coverage of more than 25,800 km.
- Second largest company quoted on the NSE after Dangote Cement.