RMB facilitates historic public offer for MTN Nigeria

RMB in Nigeria (RMBN) acted as adviser for MTN Group which completed the series one public offer for the sale of 575 million ordinary shares held in MTN Nigeria.

“RMB provided strategic independent advice in the management of key stakeholders to the transaction including MTN Nigeria, and the investing community. In addition to this, the corporate finance advisory team provided support with the marketing of the public offer to local institutional investors and retail investors,” said Chidi Iwuchukwu, head of IBD and banking division for Rest of Africa.

MTN Nigeria aimed to broaden its local subscriber base, consolidate on its effort to revolutionise telecoms and technology in Nigeria and provide an avenue for Nigerians to share in the growth and value the business creates.

RMB in Nigeria (RMBN) acted as adviser, joint issuing house and bookrunner to MTN Nigeria on the transaction, with the public offer.

The public offer follows the listing by the introduction of MTN Nigeria shares on the Nigerian Exchange in 2019 and is the first step of a series of offers for MTN Group to sell down up to 14 percent of shareholding in MTN Nigeria.

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The public offer was sold to retail investors at N169 per share and is the first to be delivered digitally in Nigeria through the PrimaryOffer platform developed by Nigerian Exchange (NGX).

The offer was oversubscribed by 139 percent in accordance with the provisions of the offer prospectus, MTN Nigeria added 86.25 million additional shares, which amount to 15 percent of the subscriptions, to absorb for the oversubscription.

Iwuchukwu noted “the offer for sale represents a significant milestone for MTN Nigeria and also the Nigeria capital market, RMB is proud to have acted as joint issuing house and bookrunner on the offer and remains a trusted adviser to MTN Nigeria.”

RMBN alongside RMBN Stockbrokers, toured the country with the client in a series of roadshows to sensitise people about the public offer. The team was able to leverage on the bank’s strong relationship with other finance houses as well as the brokerage community to drive retail participation to ensure a successful outcome.

The public offer is a monumental accomplishment for the Nigerian Capital Market as the first public offer to be delivered through a digital platform, thereby ensuring wider investor participation and ease for investors.

More than 89 percent of the retail offer subscribers applied through the primary offer platform via mobile and web. A total of 114,938 CSCS accounts were created for new investors, 85 percent of whom are under age 40. The capital market stands to gain improved liquidity given the entry of new and diverse investors into the market.

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