MTN Nigeria has been listed on the Nigerian Stock Exchange by introduction of 20.35 billion (20,354,513,050) ordinary shares at N90 per share, on the premium board of the Exchange.
MTN Nigeria, a part of the MTN Group, is the first telecommunications network provider to be listed on the NSE premium board, a listing segment for the elite group of issuers that meet the Exchange’s most stringent corporate governance and listing standards.
Already, the 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.
The listing, it is believed, would afford Nigerians the opportunity to own 20 per cent of the company’s shares.
The MTN stock appreciated by N9 at the first trading day to close at N99 per share, having traded 5.5 million shares worth N545.59 million in 15 deals.
The landmark listing of 100 per cent of issued and paid-up ordinary shares of the telecom firm which is the second largest seen by the stock exchange after Dangote Cement Plc. added N1.88 trillion the market capitalisation of the equities market.
This listing is seen as a major milestone in deepening Nigeria’s equity market and capable of attracting new portfolio investments over time.
Speaking on the listing, MTN’s Chairman, Mr. Pascal Dozie, said the company had, in the last 18 years, created values for Nigerians, adding that this would be extended further by the listing.
“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,” he said.
He added that MTN, through its technology, had also empowered millions of people and businesses in rural and urban areas.
This, he said, has driven innovation, expanded market access and enhanced local economic inclusion.
“Today is a major milestone in the evolution of MTN in Nigeria and it is fitting that it takes place 18 years on the day since I made the first call on the MTN network on May 16, 2001. I am delighted that we can expand this impact further today, by enabling investors to trade our shares on the NSE,” he said.
Addressing investment community on the floor of the Nigerian Stock Exchange, the chief executive officer, Mr. Ferdi Moolman, listed the rational for listing to include creating access for the public to participate in the ownership of MTN Nigeria, contributing to the growth of the Exchange and to further establish brand leadership and legacy by becoming the first mobile network operator to list on the NSE.
Moolman said that the listing would afford Nigerians the opportunity to own 20 per cent of the company’s shares. He noted that the company would float an initial public offering (IPO) at a later date, adding 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. 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.
He noted that MTN Nigeria is the largest mobile operator in Nigeria with 60.3 million subscribers and 20.4 million active data.
He added that with 50 per cent market share by revenue, MTN has the largest fibre network coverage of 25,800km.
“We’ve evolved from an ambitious start-up at the genesis of a new and emerging industry, to a business that is able to touch lives in every corner of Nigeria. We have established a sustainable platform for growth, from which we are able to meet the growing and dynamic needs of our customers, our communities and our country.
“This platform has been built through a sustained focus on customer-centric delivery, striving to ensure that every subscriber gets as much value for their money as possible. We are grateful to customers for their loyalty and to our people, our partners and our regulators for the opportunity to continue to contribute to Nigeria’s growth story.
“We are only beginning to tap into the opportunities that connectivity enables and are fully focused on investing to connect every Nigerian, and to make social innovations like mobile electricity and high impact mobile solutions in education, healthcare and agriculture available in communities everywhere,” said Moolman.
Chapel Hill Denham acted as a joint financial adviser with Stanbic IBTC capital in the historic listing and the two houses have basically been responsible for leading the transaction process over the last few months.
Speaking on the impact of the listing on the market, the chief executive officer of Chapel Hill Denham, Mr. Bolaji Balogun, said: “This listing would be very significant, firstly because it is adding almost N1.8 trillion to market capitalisation.
“It would be the second largest company by market cap on the exchange and more importantly, it will also bring more of Nigeria’s best companies on to the exchange and give a wider group of Nigerians the opportunity to participate in its shareholding.
“There are very few companies in Africa today that generate $1 billion of free cash flow and this is one of those special companies and I’m really pleased we have it on the stock exchange. This listing would encourage many other large unlisted companies both within that sector and as well as other sector to start to think about the Nigerian stock market.”
Commenting on the development, the national council president of 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.”
For his part, the, chief executive officer of NSE, Mr. Oscar, 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.”
