BY BUSAYO SAMUEL
Retail investors will be able to participate in the offer for sales of MTNN’s 575million ordinary shares on the floor of the Nigerian Exchange Limited from this week.
The opportunity for Institutional investors to buy the shares of the company through the offer closed 2pm on Friday, after which price will be fixed for retail investors to partake in the deal.
Only 10 percent of the 575 million shares were offered to institutional investors at N165.00 – N174.00/share price range. The remaining 90 percent will be offered to retail investors.
It is not yet certain at which price retail or individual investors will be able to purchase the shares per unit as at Friday. The share price of MTN Nigeria as at Friday November 24, 2021, was N190 per unit.
MTN Nigeria Communications Plc obtained the approval of the Securities and Exchange Commission (SEC) for the offer for sale of up to 575 million ordinary shares in MTNN held by the MTN Group.
As previously communicated by the company, the offer commenced by way of a book build to institutional investors (Institutional Offer), and subsequently, a fixed price to retail investors (Retail Offer).
Book Building is a process that assists companies determines the price of their shares, with the help of investment bankers, when offering them in an Initial Public Offering.
It is recommended by stock exchanges and regulators because it is the most efficient mechanism to price securities in the market.
MTN had announced the opening of a public offering for its shares and a bid from institutional investors in a transaction totalling 575 million units.
MTN Nigeria posted revenue in excess of N1.2 trillion for the period from January to September on the back of Nigerians’ fast-increasing demand for data.
MTN Nigeria Communications Plc recently received Approval in Principle from the Central Bank of Nigeria for a licence application for the MOMO Payment Bank Limited.
MoMo is an acronym for mobile money which allows registered agents to perform transactions for customers. It allows cash transfers for people who do not have bank accounts and ATM cards.
According to financial experts, MoMo will be a major revenue driver for the company in the years ahead.
