MTN Nigeria has opened its doors to Nigerian investors who can buy a stake in the company, it is a big deal for the Nigerian economy
Two years after listing on the Nigerian Stock Exchange (NSE), MTN Nigeria, one of the biggest telecommunication companies in Africa, offered 575 million shares via public offer to Nigeria investors.
The shares are worth $241.7 million in the Nigerian unit to institutional investors and retail investors.
MTN had listed in 2019 as one of the deals it brokered with the Nigerian government following punitive fines handed to it for regulatory infringement.
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The 2019 listing was consummated by the introduction of 20,354,513,050 ordinary shares of MTN Nigeria at a listing price of N90.00 per share.
In a statement on Thursday, Uto Ukpanah, MTN company’s secretary, said the sales would run for a month to December 2021.
“MTN Nigeria Communications PLC (MTN Nigeria) is pleased to inform the market that MTN Group Limited has announced its intention to proceed with a public offer for sale of up to 575 million shares in MTN Nigeria by way of a bookbuild to institutional investors and fixed price to retail investors,” the statement reads.
“The offer is anticipated to open in November 2021 with a bookbuild to institutional investors, after which a fixed price is expected to be announced for retail investors also in November 2021. The offer is expected to close in December 2021,” MTN says.
It added: “This is the first step in MTN Group’s previously communicated statement of intent to sell down approximately 14% of its current shareholding in MTN Nigeria.
“Further information about the offer and ways to subscribe will be provided,” MTN says.
This decision of MTN marks the first time the local unit of Johannesburg-based MTN Group will welcome subscription from the public roughly two and a half years after it debuted on the Nigerian Exchange Limited (NGX) by way of introduction.