MTN Nigeria has revealed plans to open an application list for its public offering of 575 million ordinary shares to the general retail investing public at a price of N169 per share on December 1, 2021, and would close on December 14, 2021. This offer – MTN Share offer – is an offer for sale by MTN Group, which is divesting part of its shares in MTN Nigeria to allow Nigerian institutional and retail investors to buy equities in the telecommunications giant.
The Chief Executive Officer of MTN Nigeria, Mr Kari Toriola, while announcing this during a press conference on Tuesday in Abuja, said the shares were structured to ensure that it broadens its local shareholder base providing an opportunity for as many Nigeria as possible to become shareholders in MTN Nigeria in the group and value that this great business creates.
He said MTN is not trying to raise money through sales of shares nor is it trying to exit the country, but seriously trying to broaden the ownership of the telecom company in the country.
“Today is a remarkable day for me personally and for MTN as an organisation as we further the process of broadening the ownership of MTN Nigeria PLC.
“We marked 20 years of operations in Nigeria, and I can’t think of a better way to celebrate this milestone than to expand Nigeria participation in the shareholding of MTN Nigeria through the process which we are announcing on Tuesday.
“We offer for sale up to 575 million shares held by MTN Group in MTN Nigeria has been deliberately structured to ensure that it broadens our local shareholder base providing an opportunity for as many Nigeria as possible to become shareholders in MTN Nigeria in the group and value that this great business creates
“To be clear, we are not raising capital, this is a sell-down by MTN group of its shareholding in a structured process from just under 79 per cent to 65 per cent.
“Also to be clear, this is absolutely not any form of an exit of MTN Group from Nigeria, there is no MTN group without MTN Nigeria and there is no MTN Nigeria without MTN Group, it is genuinely a desire to have as many Nigerians as, become shareholders in this business and share in the value that we create in the future going forward,” he explained.
He said the transaction has been structured to maximise long term retail participation, so the telecoms are bringing to the market a hybrid and digital application process.
“I believe it is the first digital application process and an extensive network of license agents to ensure that we have a broad footprint as possible and as much participation as possible.
“This offer is the first paperless subscription channel in Nigeria. It enables retail investors to subscribe for shares electronically. What we are doing is taking the friction out for the process for people to invest in the stock market and in MTN Nigeria.
“Our intention is to hold a local shareholders base of more than 2 million Nigerian while we remain to focus on building the largest retail shareholder base in the country”, he said.
The MTN Chief Financial Officer, Modupe Kadiri further, explained that 10 per cent of the shares will be offered to institutional investors, while the remaining 90 per cent of the share will be offered to retail shareholders.
“The retail offer period is going to open for two weeks and it is to enable as many retail shareholders as possible and afford them the opportunity to participate in this exercise. During this time, MTN shares will continue to be traded on NGX.
“A minimum of 10 per cent shares in this offer is being offered to institutional investors by the way of book bills, while the remaining 90 per cent of the share will be offered to retail shareholders at a fixed price N169, as at today, the closing price of MTN in the stock exchange was N190, so that offers instantly a discount of 11.05 per cent of the life price of N31 per share,” Modupe stated.
He said the offer will open at 8 am on Wednesday, December 1, 2021, and close at 5 pm on December 14, 2021.
“The minimum subscription is 20 shares. The good thing about this offer is that it includes an incentive of one free share for every 20 shares that you buy up to a maximum of 250 shares per investor,” he added.
Mr Temi Popoola, CEO of Nigerian Exchange while commenting, said “we have no doubt for this transaction to change the face of the capital market investing in Nigeria.”
The MTN Group President and Chief Executive Officer, Rolph Mupita, said the offer aligns with MTN Group’s strategic priority to create shared value.
“In the last 20 years, we have worked diligently to connect 68 million subscribers onto voice and data networks and ensure that we deliver the benefits of modern connected life. With this Offer, we will contribute to the further deepening of Nigeria’s equity capital markets. It is the first in a series of transactions as the MTN Group implements its plans to ensure broad-based ownership by reducing its shareholding in MTN Nigeria to 65% over time.
