Existing shareholders of MTN Nigeria balked at a public sale on the first trading day of the telecommunication company, Thursday.
MTN Nigeria, which did a listing by introduction today (Thursday) attracted a bid of 165 million units on the first trading day, which works out to N14.8bn at a N90 share price, but there wasn’t a single unit on offer. At least not publicly.
That’s because there was one private transaction which was a cross deal of 5.3 million units sold at N99 per share. That means MTN gained 10 percent on its first trade, effectively valuing the cross deal at N524 million.
A cross deal is a direct sale whereby an investor chooses to sell to a particular investor, rather than make a public offer wherein the highest bidder gets the stock.
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