Nigeria’s telecommunications giant, MTN Nigeria, has officially applied for listing by introduction on the Nigerian Stock Exchange (NSE). The disclosure was made on Monday by the Securities and Exchange Commission (SEC).
Head of Corporate Communications of SEC, Mrs. Efe Ebelo, said in a statement to reporters: “MTN Nigeria has applied for listing by introduction which will enable the company to be listed and allow shareholders sell their shares on the floor of the exchange. SEC can confirm that we are in receipt of an application from MTN requesting for registration of their existing securities. Presently, their application is receiving attention.”
MTN Nigeria To Meet Requirements To Get Listed On The Local Bourse.
Introductory to its listing on the local bourse, MTN Nigeria recently said it has finalized its conversion from a private company to a public liability company (Plc.). The firm, earlier in the year, declared plans to list before July after failing to do so last year as promised.
The listing is, however, subject to the resolutions of the current court case over alleged $2 billion tax defaults. The transition to a Plc is, therefore, a legal requirement and a key milestone in the preparatory process for MTN’s listing by introduction on the NSE, analysts say.
Speaking on the announcement, MTN CEO, Ferdi Moolman, said, “MTN’s proposed listing on NSE will create a new telecoms asset class for investors and also provide a wider group of Nigerians with a chance to take part in the MTN investment opportunity.”
“Our conversion to a Plc. is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019. It is a confirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them. We look forward to continuing our engagement with the SEC and NSE to take forward the listing process,” Ferdi concluded.
MTN To Become Second Largest Company Quoted On The NSE.
In the meantime, capital market operators have praised MTN Nigeria’s application to SEC for listing by introduction, saying that it would expand market liquidity. The market operators stated this in an interview with the News Agency of Nigeria (NAN).
Uche Uwaleke, a research fellow at SEC, while commenting on the development, said, “the market capitalisation of NSE would be deepened with the coming of MTN. We are looking at additional N2 trillion being added to market capitalisation and it will make MTN the second largest quoted company in Nigeria after Dangote Cement,” he said.
MTN To Write Its Success Story With The Nigerian Capital Market.
Uwaleke believes that listing MTN Nigeria on the NSE would help in product diversification at the exchange citing that it is a door opener for other transnationals especially those in the telecommunications sector such as Globacom and Etisalat, etc. to come and be part of the success story of the Nigerian capital market.
MTN Nigeria In Brief.
MTN Nigeria is a part of the MTN Group based in Johannesburg, South Africa. The company is the largest telecommunication network in Nigeria by market share, with an overriding focus on being the catalyst for Nigeria’s economic growth and development through the provision of world class communications.
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