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Why Futureview Is Wooing Investors To MTN Offer

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MTN

Futureview Group has urged its clients to take advantage of the planned offer for subscription of 575 million shares by MTN Nigeria to beef up their portfolios.

The book building for institutional investors in the MTN offer closes today after which price for retail offer will be determined. Book building is a process by which an underwriter determines the issue price of a security through an aggregate demand of institutional investors and high networth individuals.

Group Managing Director, Futureview Group, Mrs Elizabeth Ebi, advised her clients to subscribe to  the offer. Futureview Securities Limited is one of the accredited stockbrokers to the offer.

Head, Corporate Finance, Futureview Financial Services, Mr Solomon Amicki, said  MTN’s value would double after the offer because of the parent company controls over 85 per cent of the mobile money market in Ghana.

“The Central bank of Nigeria recently granted an approval in principle to MTNN and Airtel to operate Payment Service Banks (PSB) with final approval to follow in six months subject to specific requirements. The value of MTN is tipped to double as MTN already has this blueprint running in Ghana and this has been very successful.

“The parent company controls 85 per cent of the mobile money market in Ghana and they raked in revenues of N84.9 billion in nine months through 2021 according to its financial statements. The MTN Momo business in Ghana is similar to what MTN would be able to do in Nigeria. Futureview Analysts are of the opinion that the huge subscriber base in Nigeria would shift the projected revenue up to N300 billion within 12 months.

“We also believe this new project would boost the fundamentals significantly and increase the share price above 80 percent in the next couple of months after commencement. Flutterwave Paystack and Kuda have tripled their valuation in the last three years by focusing majorly in the online payment space. Flutterwave is valued at over $5.4 billion and has concluded over 100 million transactions. MTN has over 65 million subscribers as at 2019 and we believe that a good chunk of these 65 million subscribers would execute more than 300 million online transactions with MTN Payment service platforms at their fingertips.

“The results of this continuous trend would double MTN’s N1.08 trillion valuation within the upcoming months .Other analysts believe that MTN would be facing stack competition with the existing players but we believe with MTN’s loyal subscriber base of above 65 million it would easily win this war. This is one of the many reasons we are encouraging you to be part of the book building process or buy the MTN shares when the offer opens,” Futureview stated.

Futureview had earlier encouraged its customers to subscribe to Dangote Cement’s offer for subscription  90-Day Series I Commercial Paper, 180-Day Series 2 and 270-Day Series 3 Commercial Paper of N50 billion each as they have high liquidity value.

Credit: thenationonlineng.net

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