SEC Authorises MTN Nigeria to Sell 575 million Shares to Public

By Dipo Olowookere

MTN Nigeria Communications Plc has been given permission to sell about 575 million shares of the company to members of the public.

The authorisation to offer the stocks to the investing public comprising institutional and retail investors was given by the Securities and Exchange Commission (SEC).

The telecommunications giant had filed an application to the apex capital market regulatory agency in Nigeria for the sale of the equities held by MTN International (Mauritius) Limited.

This development will make the company’s shares become more liquid at the stock market, boost its free float and serve as another form of raising fresh capital.

When MTN listed its equities on the floor of the Nigerian Exchange (NGX) Limited in 2019 by introduction, they were very scarce because most of the directors and earlier investors kept their holdings close to their chests. This almost caused an issue until a few of them offloaded to allow retail investors to have a bite of the pie.

As part of efforts to make the stocks more liquid, MTN International (Mauritius) Limited is releasing 575 million units to investors and this would be done through a bookbuild.

According to a notice issued by MTN Nigeria, the sale would be done in two tranches, with the first to qualified institutional investors.

Offer for them commenced on Tuesday, November 23, 2021, at 12 noon and will end at 2.00 pm on Friday, November 26, 2021.

After this, the sale to retail investors will follow at a fixed price to be determined by the company.

“MTN Nigeria is pleased to announce that SEC has approved an offer for sale of up to 575 million ordinary shares in MTN Nigeria held by MTN International (Mauritius) Limited, by way of a bookbuild to qualified investors (institutional investors) and a fixed price to retail investors.

“The institutional offer opens at 12.00 noon on November 23, 2021, and closes at 2.00 pm on November 26, 2021, after which a fixed price will be determined for the retail offer.

“The retail offer is proposed to open after the institutional offer and an announcement will be published in this regard once clearance is obtained from the SEC,” the statement signed by the Company Secretary, Uto Ukpanah, stated.