A major missing piece of the puzzle among equities listed on the Nigerian Stock Exchange (NSE), was filled today as MTN Nigeria, begins trading.
MTN Nigeria trading under the ticker (MTN) is the Nigerian unit of MTN Group Ltd., Africa’s biggest mobile-phone company.
The shares will have a free float of 21 percent, and trading began today at N90 a share, for those able to get their orders with brokers filled.
Upon listing MTN will have a market capitalization equivalent to N1.8 trillion ($5.1 billion), less than 2 times 2018 annual revenues.
The listing will be adding a fourth major sector to the NSE after Financials like Zenith Bank or Guaranty Trust Bank, Industrial names like Dangote Cement, and Consumers goods firms like Nestle and Nigerian Breweries.
Analysts say this will help balance the Nigerian bourse, give investors options for sector rotation and reduce volatility associated with a single name dragging down the entire market.
By revenues, MTN is estimated to be the largest corporate company in Nigeria with 2018 revenue of N1 trillion.
By market capitalization it will be the second largest listed company.
The top 5 largest listed firms in Nigeria are now Dangote Cement, MTN Nigeria, Nestle Nigeria, Guaranty Trust Bank, and Zenith Bank.