MTN offers retail investors N21 price discount as digital public offer opens today
MTN Nigeria Communications Plc is wooing retail investors with a price discount of N21.00 per share as its public offer opens today at N169.00 per share. The Company’s share at the Nigerian Exchange Limited, NGX closed on Tuesday at N190.00 per share.
MTN, yesterday, announced the commencement of N97.18 billion public offer to retail investors. The company will be offering a total of 575 million ordinary shares held in MTN Nigeria by MTN Group at N169.00 per share.
The offer, which opens today, December 1, 2021 and closes on December 14, 2021, is the first in Nigeria to be delivered via a digital platform. The offer, according to the company, would enable the parent company to reduce its shareholding in MTN Nigeria by 65 per cent.
The minimum subscription, according to the offer prospectus, is for 20 shares and lots of 20 shares thereafter and includes an incentive in the form of one free share for every 20 shares purchased, subject to a maximum of 250 free shares per investor. The incentive is open to retail investors who buy and hold the shares allotted to them for at least 12 months, post the allotment date.
By using the power of technology, the company said the offer aimed to facilitate the maximum possible participation by Nigerian investors.
Commenting on the price announcement, MTN Nigeria Chief Executive Officer, Karl Toriola, said: “The success and growth of MTN Nigeria is intrinsically linked to that of Nigeria and Nigerians. Therefore, we are very excited 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.”
MTN Group President and Chief Executive Officer, Ralph Mupita, said the offer aligns with MTN Group’s strategic priority to create shared value.
“In the last 20 years, we have worked diligently to connect 68 million subscribers onto voice and data networks and ensure that we deliver 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 percent 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.”