This follows after MTN Nigeria recently switched its legal status from a Private Limited Company into a Public Limited Company in preparation of the listing.
"It gives me great pleasure to confirm that the official listing via the introduction of MTN’s shares on the NSE will take place on Thursday, May 16. We appreciate the continued support afforded us by the government, regulators and people of this great nation. In particular, I would like to thank the staff and management of MTN Nigeria who worked tirelessly to make this day possible. This is just the beginning, we still intend to pursue a future Public Offer giving more Nigerians greater access to the MTN opportunity,” said Ferdi Moolman, CEO of MTN Nigeria.
Beyond switching to becoming a Plc, MTN Nigeria has been busy recently in preparation of the listing. Earlier in May 2019, not too long after changing the company's legal status, it applied to the NSE for listing on the exchange. MTN Group on the other hand, appointed Lamido Sanusi to the Board of Directors (International Advisory Board), an appointment which in hindsight, appears to have been in preparation for the pending listing.
It's also important to note that, as part of MTN Nigeria's reduced regulatory fine handed out in 2015, one of the requirements was that the company would list its Nigerian subsidiary on the NSE.
"MTN announced that it intends to recommend to the MTN Nigeria Board to approve the listing of its subsidiary, MTN Nigeria, by way of introduction on the Premium Board of the NSE on 16 May 2019, thereby creating a new telecoms and technology asset segment for the NSE. The listing of MTN Nigeria deepens the equity capital markets base of the country, which makes it possible to broaden the shareholding base of MTN Nigeria over time. The listing by introduction means that the existing shares of MTN Group (78.8%), the Nigerian investors (19.4%) and other investors (1.8%) will be listed without an additional public sale of shares. From this point, all MTN Nigeria shareholders will be free to trade their shares on the NSE.In terms of an NSE regulatory requirement, MTN Nigeria is required to publish a commencement listing price. The outstanding matter relating to the disputed claim by the Attorney General of the Federal Government of Nigeria has created uncertainty over the valuation of MTN Nigeria. As a result, and in the best interests of all shareholders, both current and future, the commencement listing price was set at N90 per ordinary share, which was determined with reference to private share sale transactions by MTN Nigeria shareholders over the past 180 business days," reads the full statement by MTN Group announcing its subsidiary's pending listing on the NSE.
Cover image credit: Dami Akinbode/Unsplash