Nigerians to own MTN

Mr Terri Moolman, MTN Chief Executive Officer, said that the listing
of the company at the Nigerian Stock Exchange (NSE) would afford
Nigerians the opportunity to own 20 per cent of the company’s shares.

The News Agency of Nigeria (NAN) on Thursday reports that the
exchange achieved a milestone with the listing of MTN Nigeria
Communications Plc 20.35 billion shares at N99 per share lifting the market capitalisation by N1.83 trillion.

The stock appreciated by N9.00 at
the first trading day to close at N99 per share, having traded 5.5
million shares worth N545.59 million in 15 deals.

Moolman said that the company would contribute to the growth of the nation’s bourse adding that the company would float an Initial Public Offering (IPO) at a later date.

This, he said would depend on market conditions.

Moolman added that ownership of the telecommunications firm was
expected to increase to around 35 per cent from the present 20 per cent
after the IPO.

He explained that the parent company was willing to dilute its
shareholding from the present 78.8 per cent to 65 per cent to enable the
local unit be at par with that of other multinationals listed in
Nigeria.

Moolman said that the company would further establish brand
leadership and legacy by becoming the first Mobile Network Operator to
list on the exchange.

He said that Nigeria remained a major asset for the company being the
largest African economy, largest telecommunications market in Africa as
well as leading mobile market.

On issue of delisting, Moolman assured the stockbroking community and investors that the company had come to stay.

“We believe in this market and we are here to stay,” Moolman said. ”

Earlier, Mr Oscar Onyema, NSE Chief Executive Officer, said that the
company was the first telecommunications network provider to be listed
on the NSE Premium Board.

Onyema said Premium Board was a listing segment for the elite group
of issuers that meet the exchange’s most stringent corporate governance
and listing standards.

“This Board features Dangote Cement Plc, FBN Holdings Plc, Zenith
International Bank Plc, Access Bank Plc, Lafarge Africa Plc, Seplat
Petroleum Development Company Plc and United Bank for Africa Plc,” he
said.

“We are delighted to welcome MTN Nigeria to the Exchange. Today’s
listing is a promising development in the country’s telecommunications
sector and we encourage other players in the sector to explore the
different opportunities in the capital markets for raising long term
capital.

“As a listing platform of choice, today’s listing will add to our
bouquet of diverse investment offerings to the public. Having MTN
Nigeria listed in our market is a testament of The Exchange’s commitment
to building a dynamic and inclusive market and creating channels for
sustainable investment.

“This listing will promote liquidity for MTN Nigeria, enhance its
value and increase transparency, as our platform remains one of the best
avenues for raising capital and enabling sustainable growth for
national development”, he added.

Commenting on the listing, Mr Bolaji Balogun, Chief Executive
Officer, Chapel Hill Denham, said that Chapel Hill acted as a joint
financial adviser with Stanbic IBTC Capital in the historic listing.

Balogun said that the “two houses have basically been responsible for
leading this transaction process over the last few months and I am
delighted to get it over the line.”

He described the listing as very significant, having added N1.8 trillions to NSE market capitalisation.

“It would be the second largest company by market capitalisation on
the exchange and more importantly, it will also bring more of Nigeria’s
best companies on to the exchange and give a wider group of Nigerians
the opportunity to participate in its share holding.

“There are very few companies in Africa today that generate one
billion dollars of free cash flow and this is one of those special
companies and I am really pleased we have it on the stock exchange.

“This listing would encourage many other large unlisted companies
both within that sector and as well as other sector to start to think
about the Nigerian stock market,” Balogun said.