Buy 20 Get One Free: MTN Announces Sale of 575 million Shares to investors at N169 per share
- MTN Nigeria Communications Plc (MTNN) has announced the price of its initial public offering to retail investors.
- The company is making 575 million of its shares available to the public at N169 per unit, the telecoms heavyweight said on Tuesday
- The offer, which opens at 8:00 am today and closes at 5:00 pm on 14 December 2021, will last two weeks and will be done electronically the first in Nigeria
For the first time MTN is inviting subscriptions for its shares publicly nearly two years after it debuted on the Nigerian Exchange Limited (NGX).
MTNN made the disclosure in a statement on the NGX website, signed by Company Secretary Uto Ukpanah.
Investors will be able to submit applications through the Issuing Houses, Receiving Agents (authorised Stockbrokers and Nigerian banks) and online via a unique digital application platform, PrimaryOffer, administered by the Nigerian Exchange Limited.
Source: Getty Images
What is MTN saying
Ukpanah said in the statement released to NGX:
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“The minimum subscription is for 20 shares and lots of 20 shares thereafter. The offer includes an incentive in the form of 1 free share for every 20 shares purchased, subject to a maximum of 250 free shares per investor,”
“The incentive is open to retail investors who buy and hold the shares allotted to them for at least 12 months, post the allotment date.”
MTN also said its retail offer will be delivered via a digital platform, the first in Nigeria. By using the power of technology, the telco intends to facilitate the maximum possible participation by Nigerian investors.
CEO speaks
In his reaction MTN Nigeria’s Chief Executive Officer, Karl Toriola, said:
“The success and growth of MTN Nigeria is intrinsically linked to that of Nigeria and Nigerians. Therefore, we are very excited to offer Nigerians the opportunity to own shares in MTN Nigeria.”
“Our journey to becoming the largest network in Nigeria has been humbling, but we still have a long way to go. There is much more to do to support the evolution of an inclusive digital economy, and we continue to invest as we evolve into a truly digital operator, capable of seamlessly integrating value across the evolving telecommunications, digital and fintech segments.”
While for MTN Group President and Chief Executive Officer, Rolph Mupita, the offer aligns with MTN Group’s strategic priority to create shared value.
“In the last 20 years, we have worked diligently to connect 68 million subscribers onto voice and data networks and ensure that we deliver the benefits of a modern connected life.
With this Offer, we will contribute to the further deepening of Nigeria’s equity capital markets.
It is the first in a series of transactions as the MTN Group implements its plans to ensure broad-based ownership by reducing its shareholding in MTN Nigeria to 65% over time.
MTN will be using the success of its first public listing to enlarge its market capacity to other African countries including Zambia and Uganda.
Mtn records N1.2 trillion revenue in the first 9 months of 2021
Meanwhile, Mobile telecommunication giant, MTN has reported one of the biggest profits within a space of 9 months despite a 7.5 million subscriber loss.
MTN's 9-month record profit was largely driven by data service, as active subscribers rose by 2.5 million.
The N1.2 trillion profit recorded by MTN is bigger than N754.2 billion Federal government revenue and N1.15 trillion non-oil tax revenue in the first eight months of 202.
Source: Legit.ng
