6 Things You Didn’t Know About MTN Nigeria's Listing On NSE
Nigeria's largest telecommunications company, MTN Nigeria has been planning to list on the Nigerian Stock Exchange, NSE.
It appears it is eventually going down this year. Here are 6 things you need to know about the MTN planned listing.
1. MTN Nigeria is worth $5.2 billion, about 1.5 trillion naira. It plans to list this by July this year in a debut Initial Public Offering, IPO on the Nigerian Stock Exchange, NSE.
According to pre-IPO presentation seen by Reuters on Wednesday, the company will use the opportunity to raise fresh funds to reduce debt.
2. Sources with knowledge of the matter said MTN aims to raise at least $400 million, about 122 billion naira from the IPO to pay preference shareholders.
It is preparing to file application to the Securities and Exchange Commission, SEC to launch the offer after getting approvals from existing investors last week.
3. According to the pre-IPO presentation, between May and June 2018, MTN Nigeria will go on a roadshow and list on NSE between June and July. It will now need to appoint professional parties to the offer.
4. MTN Nigeria has around 402 million shares in issue, the same amount in preference shares which it sold at $0.99 in 2007.
(Preference share is a share which entitles the holder to a fixed dividend, and whose payment takes priority over that of ordinary share dividends.)
As part of the IPO, it would split one share into 50 units, to create 20 billion shares, which would be listed on the NSE and set the IPO price via book building.
5. MTN shares are currently traded over-the-counter in Nigeria at $13, giving it a market value of $5.23 billion, down from $25 billion in 2015 before the Nigerian government fine.
The company would use the proceeds of the share sale to redeem preference shares issued to existing investors who bought the shares 11-years ago and also cut its dollar exposure.
6. MTN said in the pre-IPO document that it wants to achieve a “retail friendly” offer price for the IPO, of around 80 naira per share, the average price for shares listed on NSE.
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