MTN Nigeria Communications (MTN Nigeria) Plc’s retail public offer’s allotment is still undergoing regulatory approval, more than one month after the closure of application list for the offer.
Sources at the weekend said MTN has yet to allocate the shares to the retail investors as the allotment proposal was still undergoing regulatory approval review
According to sources, Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) is still reviewing the allotment proposal and investors will be credited as soon as the final approval is received.
Market analysts, however, said the delay in regulatory approval undermined the digitalisation of the primary offer process. The MTN offer saw the maiden deployment of the Nigerian Exchange (NGX)’s Primary Offer, a digital tool aimed at automating the primary issuance process.
The MTN Nigeria’s public offer set record as the first to be delivered through a digital platform, thus facilitating maximum participation by investors. Investors were able to submit applications through the issuing houses, stockbrokers, banks and online through a unique digital application platform, PrimaryOffer, administered by the NGX.
MTN Nigeria had offered 575 million ordinary shares of 50 kobo each to the public at a price of N169 per share. Application list for the offer had opened on December 1, 2021 and closed on December 14, 2021.
Minimum subscription to the retail offer was 20 shares and thereafter in multiples of 20 shares. The offer included a bonus share of one for every 20 shares bought by a retail investor subject to maximum bonus shares of 250 per investor. However, to qualify for the free share such retail investors must hold the shares allotted to the after the allotment date for at least a period of 12 months
The public offer was an offer for sale by MTN Group, which is divesting part of its shares in MTN Nigeria to allow investors to buy equities in the telecoms giant.
Chief Executive Officer, MTN Nigeria Communications (MTN Nigeria) Plc, Karl Toriola, said the success and growth of MTN Nigeria was linked to Nigeria and Nigerians and it was very exciting to offer Nigerians the opportunity to own shares. in MTN Nigeria.
“Our journey to becoming the largest network in Nigeria has been humbling, but we still have a long way to go. There is much more to do to support the evolution of an inclusive digital economy, and we continue to invest as we evolve into a truly digital operator, capable of seamlessly integrating value across the evolving telecommunications, digital and fintech segments,” Toriola said.
President and Chief Executive Officer, MTN Group, Ralph Mupita, said the offer aligned with MTN Group’s strategic priority to create shared value.
He noted that in the last 20 years, the group has worked diligently to connect 68 million subscribers onto voice and data networks and ensure that it delivers the benefits of a modern connected life.
“With this offer, we will contribute to the further deepening of Nigeria’s equity capital markets. It is the first in a series of transactions as the MTN Group implements its plans to ensure broad-based ownership by reducing its shareholding in MTN Nigeria to 65 per cent over time. We thank the Nigerian authorities for the support we as MTN Group have received in the various approvals related to this offer, and remain committed to play our humble role in driving digital and financial inclusion across the country over the medium-term,” Mupita said.
Credit: thenationonlineng.net
