Investors have expressed optimism that the long awaited listing of shares of MTN Nigeria Plc on the floor of the Nigerian Stock Exchange (NSE) will further boost investor’s confidence in the Nigerian capital market.
MTN Nigeria will on Thursday list about 20.35 billion shares by way of Introduction on the floor of the NSE. This, on estimate, implies a conversion ratio of 50 new ordinary shares for each of the previously held unit of shares.
Upon listing, the company is expected to be the second most capitalized in the Nigerian stock market. The stock is expected to be listed on the Premium Board category.
Currently, only Access, United Bank for Africa (UBA), ZENITH, FBNH, DANGCEM, WAPCO, and SEPLAT are on this board.
Nigeria is a big telecoms market and MTN is well positioned and major player in the market.
Speaking with Daily Champion, National President, Constant Shareholders Association of Nigeria, Alhaji Shehu Mikail, noted that the listing is a signal to the international market that Nigeria capital market is good market for business for both local and multinational companies.
“It is good that MTN Nigeria is coming to list on our market. That will further attract attention of foreign investors to our market. The viability of the market is going to be based on stability of governance,” he said.
MTN Nigeria is the leading mobile operator in Nigeria. The company has delivered impressive performance since launch, supported by both the first-mover advantage and significant investments of over N1.4 trillion in the last decade into scaling market position.
MTN Nigeria refreshed its management in 2017 to support the execution of the new growth initiatives developed following a challenging 2015.
Analysts said: “Compared to the previous OTC structure, the upcoming listing portends significant liquidity opportunity for all existing holders of MTN Nigeria’s shares.
Holders of the company’s shares had been advised late in April of the transfer of their shares into the Central Securities Clearing Systems (CSCS).
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