MTN retail investors get 35% return, N174bn dividend expected from Thursday
Retail investors who participated in the MTN Nigeria Communication Plc (MTN Nigeria) Offer for sale of 575 million shares are currently reaping about 25 percent return on their investments. This return is expected to be up to 35percent when retail investors start receiving their dividends after the company’s annual general meeting on Thursday.
“Everyone that subscribed to that public offer will receive their dividends on Friday. It will send a signal that from an investment perspective MTNN is serious and care about our shareholders as well as the rest of the society and we are digitally enabled to ensure that you get your value as when due,” Karl Toriola, Chief Executive Officer, MTN Nigeria said on Wednesday during a media innovation session at Lagos Business School.
MTN Nigeria in November 2021 launched an offer for the sale of 575 million shares held by the MTN Group in MTN Nigeria Communications Plc. The offer was 139.47percent oversubscribed, triggering the release of an additional 86.25 million shares.
The Offer was implemented by way of a bookbuild to qualified institutional investors and a fixed price offer of N169 per share to retail investors. MTN N leveraged an innovative digital platform to maximise participation, bringing in 126,720 new retail shareholders, while many of Nigeria’s institutional investors participated in the bookbuild phase of the offer. The share price of MTNN has risen to N212 as of April 26, representing a positive return in excess of 25percent.
Of the retail applicants who successfully applied for MTN Nigeria shares using the digital platform, 76percent were women and 85percent were under the age of 40, dramatically enhancing the diversity in MTNN shareholder base. The successful public offer was the beginning of a new phase in MTN Nigeria’s journey.
MTNN intends to further diversify its shareholder base through a series of offers that will reduce the MTN Group’s shareholding in the Company to 65percent over time. This will provide more opportunities for Nigerians to participate.
To further create value for shareholders, the MTNN dividend will be paid at the rate of N8.57 per every 2 Kobo ordinary share (subject to appropriate deduction of withholding tax); to shareholders whose names appear in the Company’s Register of Members at the close of business on Wednesday, April 6, 2022 (bringing the total dividend for the year ended December 31, 2021 to N13.12.
Toriola noted that since inception, MTNN has paid over N2.5trillion as dividends, adding that the Telco has also paid over N3.5trillion in taxes and levies to the government and over N3.4trillion capital investment. The dividend will be paid directly into the shareholders’ bank accounts.
“We have invested over N23billion through MTN Foundation supporting over 30 million people. We have committed over N28billion through our Y’ello hope initiative to support our broad base of stakeholders”, Toriola further noted among other of the company strategy in enabling broad socio-economic development.
MTN Nigeria results for the full year ended December 31, 2021, show its revenue came in higher by 22.9 percent to N1.654trillion from a low of N1.346trillion in 2020.
The Telco’s financial scorecard released to investors at the Nigerian Exchange Limited (NGX) shows its service revenue was up by 23.3percent to N1.651trillion from N1.339trillion in 2020.
Voice revenue grew by 8.4percent to N971.4billion from N896billion in 2020, while Data revenue was up 55.3percent to N516.1billion from N332.4billion in 2020.
Digital revenue went up by 61.2 percent to N18billion from N11.2billion in 2020. Fintech revenue grew by 57.3percent to N70.6billion from N44.8billion in 2020.
Service revenue relates to voice, data, digital, fintech and SMS included in other revenue. Data revenue includes fixed data. Digital revenue consists of revenue generated from rich media services, content VAS and mobile advertising. Other revenue consists of revenue from SMS, ICT and Infrastructure, devices, leased lines and non-service revenue.
The results show a profit after tax (PAT) rose by 45.5 percent to N298.7 billion from N205.2billion in 2020, while earnings per share increased by 35.8percent to N14.7 from N10.8 in 2020. MTN Nigeria Communications Plc is part of the MTN Group, an emerging market communication services provider at the forefront of technological and digital innovation with a presence in 19 countries in Africa and the Middle East.