MTN’s retail offer oversubscribed by 139%, 6.6m Nigerians become shareholders

MTN Nigeria Communication Plc has made public the result of its recent retail offer, indicating that it was oversubscribed by 139.47 percent and 6.6 million Nigerians have become direct or indirect shareholders.

The telecommunications company broke news of the result in a statement signed by the Company Secretary, Uto Ukpanah on Tuesday. It was titled ‘Results of the series 1 offer for sale of MTN Nigeria Communications Plc ordinary shares, first public offer via digital platform in Nigeria’.

Commenting on the result, the Chief Executive Officer, MTN Group, Ralph Mupita, said, “We are pleased that this offer has given so many Nigerians the opportunity to become owners of MTN Nigeria.

“With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base and creating shared value has been achieved. We are proud that our offer was the first Nigerian public offer to use the digital application platform, primary offer, which enabled wider investor participation across Nigeria. We thank the Nigerian authorities for their support of this offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium.”

The company said the over-subscription led to an allocation of an additional 86.25 million shares above the 575 million shares it had initially offered to the public. It said it allotted 661.25 million shares at a fixed price of N169 per share.

It said a total of 126,720 retail investors submitted valid applications and received full allotment.

It added that about 76 per cent of successful applicants via the digital platform were women, and 85 per cent of applicants were under 40.

The CEO, MTN Nigeria, Karl Toriola, said, “We are delighted to welcome so many new shareholders to the MTN family, up 11.6 times from the number before the offer.

“It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate.

“We are pleased with the level of digital innovation we championed with this offer with the active collaboration of our lead issuing house and the various regulatory bodies. Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access.

“I am particularly pleased that we completed this transaction in an accelerated time frame ensuring new shareholders can realise value almost immediately through participation in our 2021 full-year dividend.”

The CEO of Chapel Hill Denham, the Lead Issuing House, Bolaji Balogun, said, “Chapel Hill Denham is honoured to have worked with MTN to complete Nigeria’s first digital and predominantly green offering.

“I wish to thank the SEC, the NGX, the CSCS, all the professional firms and other stakeholders, for delivering a big win for Nigeria’s capital markets in enabling the adoption of primary offer and this transaction marks a new and exciting future.

“Over 90 per cent of subscribers to the offer were first time participants in the capital markets and MTN Nigeria’s strong investment case made this possible.”

Chief Executive Officer, Nigerian Exchange Limited (NGX), Temi Popoola, said, “The NGX is proud to have worked with MTN Nigeria, Chapel Hill Denham and other parties to the transaction in advancing Nigeria’s capital market through the adoption of forward-looking technology.

“In the NGX era, we are resolute in our commitment to democratise finance in Nigeria in order to ensure every type of investor has access to public markets where they can invest in companies they believe in and reap value.

“With the digitised MTN Nigeria offering, we have made a tremendous stride in our plans for a full digital transformation of the Nigerian capital markets and we look forward to building on this.”