MTN Nigeria fixes NSE Listing for First Half of 2019
The President and Chief Executive Officer of MTN Group, Mr Rob Shuter has disclosed that MTN Nigeria NSE listing (Nigeria Stock Exchange) will happen by way of introduction in the first half of this year.
Mr. Shuter made this known recently during the MTN Group’s investor update conference call
“We have decided though to pursue the NSE listing by means of a listing by introduction. It is phase one,” he reports Punch.
He indicated that the move would enable the company to get listed easily, adding that findings showed that the free float in the Nigerian market would be about 35 percent.
Transcript of the call revealed that after the phase one, which would be completed by the first half of 2019, the shares would be open to Nigerian investors as part of the second phase of the NSE listing.
“It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,” Shuter said.
He added, “We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 percent than the free float we have today which is around 20 percent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.
A source who declined to be quoted said the method would enable the company to determine the fair value of its stocks before the IPO.
The source said the telecoms company had sold some shares in the country through a special purpose vehicle, which might be converted to MTN Nigeria shares at the NSE.
The Chief Executive Officer, Enterprise Stockbrokers, Mr Rotimi Fakayejo, said this meant MTN Nigerian would approach the NSE with its existing shareholders and gradually introduce the shares to the public.
Explaining how listing by introduction worked, he said, “They may likely be mandated to sell on the first day of listing and then they can start selling gradually to interested investors. They might now decide to do offer for sale, which is selling from existing shareholders to the public; they may be able to achieve the required float in the market in order for them to accelerate the process of getting listed.”
Culled from Punch