…….ALTON, ACTON, NATCOMS reacts
MTN Nigeria Communications Plc (“MTN Nigeria”) has finally announced its listing on the Premium Board of The Nigerian Stock Exchange (“NSE”).
This information was discouraged in a statement on Wednesday by the telecommunication company in Lagos.
According to the telco, “We are pleased to announce that it has received approval to list on the Premium Board of The Nigerian Stock Exchange (“NSE”).
“The listing is set to proceed on 16 May 2019 and will be done by way of an introductory listing.
“The listing by introduction means that the shares of existing MTN Nigeria shareholders 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.
Commenting on the announcement, CEO of MTN Nigeria Ferdi Moolman said “It gives me great pleasure to confirm that the official listing via 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.”
MTN Group CFO, Ralph Mupita said” As MTN Group we are very pleased that we are taking this first and important step towards increasing the local ownership of the company, and building the equity capital markets in Nigeria”
MTN Nigeria recently announced its earnings for the first quarter ended March 31, 2019 recording 13.4% growth in service revenue. This was driven by a 12.7% and 32.4% rise in voice and data revenue respectively and the addition of 2.1 million active mobile subscribers to the network. The company announced Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of N150.4 billion and expanded EBITDA margins to 53.3% (44.2%, on an IAS 17 basis) due to growth in revenue and effective cost management.
Recall that, the telco had earlier announced it has successfully completed the registration of 20,354,513,050 ordinary shares of N0.02 each with the Securities and Exchange Commission (SEC).
In his reaction, the President of Association of Telecommunication Companies of Nigeria (ATCON), Mr Olusola Teniola said, the completion of MTN’ registration of shares is part of the overall strategic intention of MTN to achieve a high demand in the public for its shares in MTNN.
“It is most likely that financial institutions and large portfolio holders will initially benefit from the registration and it gives MTN and idea of shareholder appetite for those shares.
“The response to this event will determine future availability of shares to the wider public.
“This provides MTNN with a wider scope and avenue to raise funds in the capital market to pursue wider network coverage and potentially demonstrates to NSE the importance of encouraging other ICT players to follow suit.
“For the wider economy it provides yet another opportunity to begin to diversify the economy away from oil & gas only assets as data appears to be the new black gold”, Teniola noted.
Also, the Chairman, Association of Licensed Telecommunications Companies of Nigeria (ALTON), Engr Gbenga Adebayo stated that “it is a good development for the industry and it would further emphasizes the confidence by investors in the telecom sector: we believe it will assist in providing more access to capital for expansion and development of new areas of technologies.”
On his part, the President of the National Association of Telecommunications Subscribers (NATCOMS), Chief Deolu Ogunbanjo said this will provide the consumers with the opportunity to invest in the telecommunications sector.
“This is a welcome economy development because it will help to increase the nations’ GDP with a lot of positive impact on Nigeria.
“I hope other telcos can follow this laid down example by also listing on NSE even though the decision lies with the board”, Ogunbanjo connoted.