MTN Nigeria has secured Securities and Exchange Commission (SEC) approval on an offer for the sale of 575 million ordinary shares in its Nigeria company.
As a result the telecom company, MTN Nigeria has launched an equity book-build to qualified investors (Institutional Offer) and a fixed price to retail investors (Retail Offer) ahead of its planned sales of 575 million ordinary shares of the company to the public.
This was disclosed by the company’s secretary, Uto Ukpanah, in a statement made available on the website of the Nigerian Exchange Limited.
Book Building is a process that assists companies determine the price of their shares, with the help of investment bankers, when offering them in an Initial Public Offering (IPO).
It is recommended by stock exchanges and regulators because it is the most efficient mechanism to price securities in the market.
MTN had announced the opening of a public offering for its shares and a bid from institutional investors in a transaction totalling 575 million units.
MTN Nigeria posted revenue in excess of N1.2 trillion for the period from January to September on the back of Nigerians’ fast-increasing demand for data.
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This development put it on track to surpass this year its full-year sales figure for 2020 when it reported N1.3 trillion.
The statement said the institutional offer opens at 12.00 noon on November 23 and closes at 2.00 p.m. on November 26 after which a fixed price will be determined for the retail offer.
“The retail offer is proposed to open after the institutional offer, and an announcement will be published in this regard once clearance is obtained from the SEC,” it said.
MTN Nigeria’s shares, listed in Lagos, closed at N190 per unit on Tuesday, recording no movement.