- MTN Lists Shares On Nigerian Stock Exchange
Mobile Telecommunication operator, MTN has given 20% of its shares to Nigerians for ownership.
The Chief Executive Officer, MTNNigeria, Ferdi Moolman, confirmed this at the listing of the company’s on the Nigeria Stock Exchange on Thursday stating that the development would afford Nigerians the opportunity to own 20 per cent of the company’s shares.
He further explained that the company would float an Initial Public Offering (IPO) at a later date, explaining that the IPO would depend on market conditions.
Moolman said that ownership of the telecommunications firm was expected to increase to around 35 per cent from the present 20 per cent after the IPO.
He explained that the parent company was willing to dilute its shareholding from the present 78.8 per cent to 65 per cent to enable the local unit be at par with that of other multinationals listed in Nigeria.
Moolman said that the company would further establish brand leadership and legacy by becoming the first Mobile Network Operator to list on the exchange.
He said that Nigeria remained a major asset for the company being the largest African economy, largest telecommunications market in Africa as well as leading mobile market.
On issue of delisting, Moolman assured the stockbroking community and investors that the company had come to stay.
“We believe in this market and we are here to stay,” Moolman said. ”
Nigerian Stock Exchange (NSE), on Thursday achieved a milestone with the listing of MTN Nigeria Communications Plc 20.35 billion shares at N99 per share lifting the market capitalisation by N1.83 trillion.
The stock appreciated by N9.00 at the first trading day to close at N99 per share, having traded 5.5 million shares worth N545.59 million in 15 deals.
MTN finally lists on NSE, rises by 10% on first trading day
According to Mr Oscar Onyema, NSE Chief Executive Officer, the company was the first telecommunications network provider to be listed on the NSE Premium Board.
Onyema said Premium Board was a listing segment for the elite group of issuers that meet the Eexchange’s most stringent corporate governance and listing standards.
“This Board features Dangote Cement Plc, FBN Holdings Plc, Zenith International Bank Plc, Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc,” he said.
“We are delighted to welcome MTN Nigeria to the Exchange. Today’s listing is a promising development in the country’s telecommunications sector and we encourage other players in the sector to explore the different opportunities in the capital markets for raising long term capital.
“As a listing platform of choice, today’s listing will add to our bouquet of diverse investment offerings to the public. Having MTN Nigeria listed in our market is a testament of The Exchange’s commitment to building a dynamic and inclusive market and creating channels for sustainable investment.
“This listing will promote liquidity for MTN Nigeria, enhance its value and increase transparency, as our platform remains one of the best avenues for raising capital and enabling sustainable growth for national development”, he added.
Commenting on the development, National Council President, NSE, Otunba Abimbola Ogunbanjo, said, “We are particularly pleased that MTN Nigeria has joined the prestigious club of companies listed on our Premium Board with this landmark transaction, which will differentiate it as a professionally run telecommunications company with high standards, having met The NSE’s listing criteria. A Premium Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery and providing increased returns to shareholders. It is our expectation that the MTN Nigeria listing, which is the NSE’s 2nd largest, will encourage other telecommunication companies to list their shares on The Exchange, thereby opening the sector up to cheaper, long term capital that will boost innovation and development.”
Speaking on the announcement, the MTN Nigeria Chairman, Pascal Dozie, commented: “Today is a major milestone in the evolution of MTN in Nigeria and it is fitting that it takes place 18 years to the day since I made the first call on the MTN network on May 16th 2001. Since our initial investment in 2001, we have worked in partnership with Nigerians to deliver the largest network in Nigeria, with over 60 million people now able to access mobile communications services.
We employ over 1,600 people and our operations create employment for more than 500,000 Nigerians. Our technology has empowered millions of people and businesses in rural and urban areas. This has driven innovation, expanded market access and enhanced local economic inclusion. I am delighted that we can expand this impact further today, by enabling investors to trade our shares on the NSE.”
