*The drop in MTN Nigeria share price has pushed the main share index (.NGSEINDEX), down 1.73 percent, a three-week low

Isola Moses | ConsumerConnect

After the telecoms service provider had set a retail public offer price that is lower than its share price on the stock market, MTN Nigeria fell 10 percent to a five-week low of N171 Wednesday, December 1, 2021.

The Nigerian unit (MTNN.LG) of South African telecoms group MTN (MTNJ.J) had opened its sale to retail investors Wednesday at N169 per share on Nigerian Stock Exchange.

It is recalled that MTN listed its Nigerian business in Lagos a couple of year back at N90 each to become the second-largest stock by market capitalisation.

Trading floor of the Nigerian Stock Exchange Limited

However, in March 2020, the company’s shares fell back to the listing price due to lockdowns to slow the spread of damaging Coronavirus (COVID-19).

The drop in MTN, Nigeria’s second biggest listed firm, pushed the main share index (.NGSEINDEX), down 1.73 percent, a three-week low, agency report said.

ConsumerConnect reports the MTN Nigeria Tuesday, November 30, 2021, had  announced a public offer of 575 million shares at N169 per share with effect from December 1, whie the offer closes December 14.

Mr. Karl Toriola, Chief Executive Officer, MTN Nigeria, told reports in Abuja, that the “Retail Offer’’, which is to be delivered via a digital platform is the first in Nigeria.

By using the power of technology, Toriola stated that MTN aims to facilitate the maximum possible participation by Nigerian investors.

The company noted that the minimum subscription would be for 20 shares and subsequent subscriptions would be in multiple of 20 shares.

This would include an incentive in the form of one free share for every 20 shares purchased, the telco said.

The MTN Chief stated: “The offer 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.

“The success and growth of MTN Nigeria is intrinsically linked to that of Nigeria and Nigerians.”

Accordimg to him, MTN Nigeria has much more to do to support the evolution of an inclusive digital economy in the country.

The company, Toriola said, would continue to invest as it evolves into a truly digital operator capable of seamlessly integrating value across evolving telecommunications, digital and FinTech segments.

Mr Ralph Mupita, MTN Group President and Chief Executive Officer, in his remark also said the public offer aligned with MTN Group’s strategic priority to create shared value.

Mupita noted: “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 further deepening of Nigeria’s equity market.

“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.