Analysts have given reasons why retail investors could
not access the shares of MTN Nigeria on the floor of the Nigerian Stock
Exchange (NSE), following its listing last week.
listing of MTN Nigeria was the most anticipated and biggest on the
floor of the exchange last week as the Nigerian stock market rebounded.
This followed the listing by introduction of 20.4 billion shares of MTN Nigeria shares at N90 a share and a par value N0.02.
within two trading sessions, its share price gained 20% to lift the
local bourse marginally out of red territory. The overall market
performance measure, NSE ASI, closed northwards at 28,871.93 points,
having gained 153 basis points w-o-w.
at Coronation Research have suggested that this week, they expect the
local equities market to close marginally in green territory as the
euphoria of the listing of the telecoms giant is likely to be sustained.
"More so, we expect investors to take advantage of the general low
share prices in the market," they said.
soon after the close of business on Thursday and Friday, retails
shareholders have started expressing frustration at their inability to
access the shares on the floor of the exchange.
Okezie, a representative of Minority shareholders told Daily Trust
that: "shareholders are not happy because we could not buy their shares;
it was not available and we don't share in all the excitement going
According to Coronation Merchant Bank, no capital is being raised from the listing.
is because MTN's existing shareholders have not made any commitment to
sell off some of their shareholdings. Consequently, no liquidity should
be expected from this process. It can best be said that the company is
basically doing this out of obligation," it said.
According to the Nigerian Stock Exchange, there are about five different ways to list a company's shares on the Nigerian bourse.
most popular one is through Initial Public Offering, which basically
avails the investing public the opportunity to subscribe to a company's
shares. Two things are involved when shares are listed through an IPO,
namely: an offer for subscription and an offer for sale.
Listing by introduction, on the other hand, has to do with the listing of a company's shares without an Initial Public Offering.
to the NSE, "your company's shares are listed without a prior IPO; the
company would usually have raised capital prior to applying to list, and
also must meet the listing requirements - including a minimum number of
public shareholders (300 to list on the main board; 51 to list on the
ASEM) and minimum public float (20% for the main board; 15% for ASEM)."
the delay in the IPO, the Chief Finance Officer of MTN Nigeria,
Adekunle Awobodu said: "We had wanted to do the IPO last year but some
circumstances hindered it, those circumstances are still there, as the
situation improves and market conditions permit, we will have the IPO."
head of research at FSDH, Ayodele Akinwunmi, said: "Sincerely, I think
it may be difficult for people to get the shares of MTN to buy in the
next few weeks or days because of the huge interest in it and the shares
and the fact that the current shareholders may not want to sell.
are also of the view that some investors will sell down on other highly
capitalised stocks like GTB, Zenith Bank, Dangote Cement with a view to
"This sell down will create
investment opportunities in these companies. So instead of running after
MTN at the moment, savvy investors should think of positioning in the
It would be recalled
that MTN Nigeria has had issues with regulatory agencies with a case
against the Attorney General of the Federation, Abubakar Malami, still
pending while N55billion is due to be paid in Q2 2019 to the telecom
regulatory body, the Nigerian Communication Commission (NCC) as the last
tranche of the N330billion fine that was agreed in 2016 for
non-disconnection of unregistered lines
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