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Leading Nigerian business intelligence publications, BusinessDay has reported that MTN Nigeria will be worth between N3.2tn and N3.9tn on the Nigerian Stock Exchange (NSE). MTN Nigeria is Nigeria’s biggest telecommunications provider with more than 64 million subscribers.
This is coming at a time the Securities and Exchange Commission (SEC) has consistently denied any clear move by the company to really indicate strong interest for the much discussed listing on the Exchange.
However, according to ventureasfrica.com reports, indications are rife that MTN Nigeria’s Initial Public Offering (IPO) has been set for August as part of MTN’s plans to restructure debts and fund local investments in Nigeria with its local currency.
Business Hilights gathered that MTN hopes to raise $400 million from the IPO to pay preference shareholders as it targets to issue about 402 million shares, with one share split into 50 units to create 20 billion shares.
Plans for MTN’s listing had been on for almost three years even before an agreement it sealed with NCC on the wake of slashing the N1.04t fine to about N330b over breaches in SIM registration regulations of 2011.
An inside source confided in our correspondent that but for issues of unfavourable market conditions, MTN would have listed on the market since last year.
There are another angle driving the emerging IPO which analysts say, MTN also plans to pay off some of its debts through the process.
Also on the table of strategy is the plan to replace its dollar-dominated debts with the local currency of the countries where its different units are situated.
The stock exchange listing of its Nigerian office is MTN’s second major listing in its West African offices this year after the Ghana IPO in May. The listing of the IPO, which was worth $754 million, was bigger than Ghana’s previous greatest share sale. The IPO was offered at 4.64 billion shares in the unit, and at 75 pesewas per unit.
It has also announced the same deal in Ivory Coast. However, in its offices in Iran, which represents its second largest market, it has been impossible for MTN to repatriate about 200 million euros ($237 million) after US President Donald Trump pulled out of a nuclear deal with the country and re-instated sanctions on it.
The team leading the IPO push for the issuance includes Chapel Hill Denham, the lead issuing house, Rand Merchant Bank, Renaissance Capital and Vetiva Capital.
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