As part of its customer-focused policy, a leading investment group in Nigeria, Futureview Group has urged its clients to take advantage of the planned Offer for Subscription of 575 million shares of MTN Nigeria through book building to beef up their portfolios.
Book building is a process by which an underwriter determines the issue price of a security through an aggregate demand of institutional investors and high networth individuals.
Futureview Securities Limited is one of the accredited Stockbrokers to the Offer. The Group Managing Director (GMD) Elizabeth Ebi, advised the clients to subscribe to the Offer which has just opened.
In a statement signed the Head, Corporate Finance, Futureview Financial Services, Solomon Amicki, says MTN’s value would double after the Offer because of the parent company controls over 85 percent of the mobile money market in Ghana.
“ The Central bank of Nigeria recently granted an approval in principle to MTNN and Airtel to operate Pay Service Banks (PSB) with final approval to follow in 6months subject to specific requirements. The value of MTN is tipped to double as MTN already has this blueprint running in Ghana and this has been very successful.The Parent company controls 85percent of the Mobile money market in Ghana and they raked in revenues of N84.9billion in 9months through 2021 according to its financial statements.The MTN Momo business in Ghana is similar to what MTN would be able to do in Nigeria. Futureview Analysts are of the opinion that the huge Subscriber base in Nigeria would shift the projected revenue up to N300billion within 12months.
Read also: MTN, Airtel to face stiff mobile money competition in Nigeria
“We also believe this new project would boost the fundamentals significantly and increase the share price above 80percent in the next couple of months after commencement. Flutterwave Paystack and Kuda have tripled their valuation in the last 3years by focusing majorly on the online payment space. Flutterwave is valued at over $5.4billion and has concluded over 100million transactions. MTN has over a 65million subscribers as of 2019 and we believe that a good chunk of these 65million subscribers would execute more than a 300million online transactions with MTN Payment service platforms at their fingertips.
“ The results of this continuous trend would double MTN’S (N1.08trillion ) Valuation within the upcoming months. Other analysts believe that MTN would be facing stack competition with the existing players but we believe with MTN’s loyal subscriber base of above 65million it would easily win this war. This is one of the many reasons we are encouraging you to be part of the Book building process or buy the MTN shares when the offer opens,” according to the statement.
Futureview has already encouraged its numerous customers to subscribe to Dangote Cement’s Offer for Subscription 90-Day Series I Commercial Paper, 180-Day Series 2 and 270-Day Series 3 Commercial Paper of N50 billion each as they have high liquidity value.
