By Dipo Olowookere
Leading GSM service provider in Nigeria, MTN Group, is yet to formally file an application for its planned listing of $500 million (N153 billion) worth of its shares on the Nigerian Stock Exchange (NSE) this year.
According to the News Agency of Nigeria (NAN), both the Securities and Exchange Commission (SEC) and the NSE, the two major regulatory agencies in the nation’s capital market, are yet to receive formal application from the telco giant.
MTN Group, which was initially fined N1.04 trillion for failing to disconnect unregistered subscribers on its network, later had the fine reduced to N330 billion and as part of an agreement it struck with the Nigerian authorities, the firm promised to list its shares on the local bourse.
Last week, the firm announced picking Nigerian companies to handle to exercise. These were Chapel Hill Denham, Renaissance Capital and Vetiva Capital.
Yesterday, SEC confirmed having discussions with MTN Group on the planned $500 million Initial Public Offering (IPO).
According to NAN, a senior management staff of SEC, who pleaded anonymity, revealed this information to it.
The source claimed although talks were ongoing, the company was yet to formally file its application for the IPO.
He said the commission was committed to investors’ protection, and that their interest would be protected in the ongoing discussion.
The source said SEC would remain committed to the development of the nation’s capital market and listing of more multinationals.
Also, another source at the NSE, who asked not to be named, stated that the stock exchange was yet received an official filing from the company.
Reports say MTN Group is being advised on the proposed exercise by Standard Bank Group and Citigroup.
Business Post reports that MTN is listing about 30 percent of its Lagos-based unit on the local bourse and most of the equities would be sold to local institutions and individuals, though foreign investors could be brought in to ensure the process is a success.
It was earlier reported that the exercise is being planned for June or July 2018, but the current chief executive of MTN, Mr Rob Shuter, said in an interview this month that he expects the IPO to be finalized by the end of the year.
Last week, MTN Group had a meeting with its bankers and held a presentation for foreign and local analysts on Friday in Lagos to give them more details about the deal and its finances.
MTN Group is a South Africa-based company with presence in Africa, the Middle East and Asia.
Adedapo Adesanya