575 million shares up for grabs in MTN’s digital public offer

MTN, in Nigeria’s first digital-only public offering is giving investors an opportunity to buy its 575 million ordinary shares.

It is arguably the first paperless public listing and this according to the largest telecom operator in Nigeria is to ensure maximum participation by investors. This means investors can buy the shares from the convenience of their devices.

Investors who prefer the traditional physical application can contact their stockbrokers or bankers.

Nigeria’s telecommunications giant, MTN hopes to raise over N97 billion from this share sale down the offer which opens tomorrow, December 1, 2021.

MTN had announced that it will offer N169 per share to retail investors during this deal, indicating a discounted rate of N21 per share or 11.05 percent

MTN shares closed at N190 per share at the stock exchange on Tuesday.

Temi Popoola, chief executive officer, NGX, said the offer brings excitement as it will help boost investors’ confidence in the market and also offer an opportunity for Nigerians who have never been part of the market to become investors.

The MTN Group is offering the shares as part of divesting its shares in MTN Nigeria to allow Nigerian institutional and retail investors to buy equities in the telecommunications giant. The Group is targeting selling down 14 percent of its stake in the Nigerian unit.

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“We are not raising capital neither are we leaving Nigeria. It is not an exit of MTN Group. This is a sell-down,” Karl Toriola said during a press conference on Tuesday.

The public offer comes with an incentive of one share for every 20 shares bought by a retail investor subject to maximum bonus shares of 250 per investor. However, to qualify for the free share such retail investors must hold the shares allotted to them for at least a period of 12 months.

The company plans to set aside 10 percent of the public offer for institutional investors whereas 90 percent goes to retail investors.

“It is a genuine commitment to making Nigerians become shareholders in MTN Nigeria. We are a Nigerian entity and we import talents from across the country into the MTN Group,” Toriola said.

The minimum subscription is 20 shares and thereafter in multiples of 20 shares.

The book-building for institutional investors was done last week with a price range of N165 and N175.

MTN Group had also announced that it will give retail investors one share for every 20 shares they buy, provided they hold those shares for at least 12 months.