MTN Nigeria Communications Plc (MTNN) has officially announced its initial public offering (IPO), making waves in the financial sector of Nigeria. With an ambitious plan to offer 575 million shares at a price of N169 per unit, this move marks a significant milestone for the telecom giant. This IPO, opening at 8:00 am and closing at 5:00 pm on 14 December 2021, is set to be a game-changer as it is conducted electronically, a first in Nigeria.
This initiative allows MTN to invite subscriptions from the public, nearly two years after it first entered the Nigerian Exchange Limited (NGX). Company Secretary Uto Ukpanah announced this development in a statement on the NGX website, providing vital details for interested investors.
Investors now have the opportunity to submit applications not only through traditional channels like authorized stockbrokers and banks but also through a cutting-edge digital application platform called PrimaryOffer. This platform, administered by the Nigerian Exchange Limited, aims to streamline the investment process for retail investors.
What You Will Learn
- MTN's IPO marks a significant milestone in Nigeria's financial landscape.
- The offering includes an incentive of free shares for retail investors.
- The total shares offered and their pricing reflect MTN's growth strategy.
- This IPO is part of MTN's broader commitment to deepening Nigeria's equity capital markets.
Insights from MTN's Statement
In the statement released to NGX, Uto Ukpanah emphasized the details of the offer, highlighting that the minimum subscription is for 20 shares, with lots of 20 shares thereafter. This structure is designed to encourage wider participation.
The offer also includes an attractive incentive: for every 20 shares purchased, investors will receive 1 free share, capped at a maximum of 250 free shares per investor. This incentive aims to reward those who hold their shares for at least 12 months post-allotment, fostering long-term investment.
MTN plans to leverage technology to facilitate maximum participation, making use of its digital platform to engage with retail investors effectively. This innovative approach is expected to set a precedent in the Nigerian market.
CEO's Perspective on the IPO
MTN Nigeria’s Chief Executive Officer, Karl Toriola, expressed his enthusiasm over this public offering, stating, “The success and growth of MTN Nigeria is intrinsically linked to that of Nigeria and Nigerians.” This statement underscores the company's commitment to involving Nigerians in its journey.
Toriola also pointed out that MTN's progress is significant for the telecommunications landscape in Nigeria and that the company is eager to offer ownership opportunities to its users. He acknowledged that while they have achieved substantial growth, there is still much work to be done to support Nigeria's evolving digital economy.
Moreover, MTN Group President and CEO, Rolph Mupita, aligned the IPO with the group's strategic priority to create shared value. He noted that over the past two decades, MTN has connected millions of subscribers and is now poised to deepen Nigeria’s equity capital markets through this offer.
Financial Performance Highlights
In recent reports, MTN revealed a remarkable N1.2 trillion revenue in the first nine months of 2021. This impressive figure reflects the company's resilience, even amid challenges such as a loss of 7.5 million subscribers. The profit was largely driven by data services, which saw an increase of 2.5 million active subscribers.
Interestingly, MTN's revenue not only surpasses the Federal government’s revenue of N754.2 billion but also exceeds the non-oil tax revenue of N1.15 trillion for the same period. This highlights MTN's pivotal role in the Nigerian economy and its capacity to drive growth even in challenging times.
With its first public listing, MTN plans to expand its market capacity into other African countries, including Zambia and Uganda, leveraging the success of this IPO to enhance its reach and influence across the continent.
