By Dipo Olowookere
One of the leading telecommunications companies in Nigeria, MTN Nigeria Communications Plc, has announced plans to sell about 575 million shares to members of the public.
The telco said in a statement on Thursday that the equities would be sold to both institutional and retail investors this month, though the exact date was not revealed.
It was stated that the sale of the stocks would be done in two parts, with the offer to institutional investors taking place first through a bookbuild, while the second part is the sale to retail investors at a fixed price.
In a statement signed by the company secretary, Uto Ukpanah, it was disclosed that the 575 million shares are from the units held by the parent company of the telecommunications firm, MTN Group Limited.
MTN Nigeria had earlier disclosed that MTN Group was planning to offload 14 per cent of its stake in the organisation as part of efforts to make more members of the public have a share of the company.
In the notice, which was filed to the Nigerian Exchange (NGX) Limited, the company stated that the public sale should be completed next month.
“MTN Nigeria Communications Plc is pleased to inform the market that MTN Group Limited has announced its intention to proceed with a public offer for sale of up to 575 million shares in MTN Nigeria by way of a bookbuild to institutional investors and fixed price to retail investors.
“The offer is anticipated to open in November 2021 with a bookbuild to institutional investors, after which a mixed price is expected to be announced for retail investors also in November 2021.
“The offer is expected to close in December 2021. This is the first step in MTN Group’s previously communicated statement of intent to sell down approximately 14 per cent of its current shareholding in MTN Nigeria,” the disclosure said.
Business Post reports that at the close of the market on Wednesday, the share price of MTN Nigeria at the stock exchange in Nigeria closed flat at N175.60.
The company joined the NGX in 2019 at a unit price of N90.
