The Securities and Exchange Commission (SEC) said that it has approved MTN Nigeria’s application to list on the Nigerian Stock Exchange (NSE) by way of introduction.
Mrs Efe Ebelo, SEC Head, Corporate Communications, confirmed this to the News Agency of Nigeria (NAN) in Lagos.
Ebelo said the commission has approved the company’s application to be listed on the nation’s bourse by way of introduction.
She said that the company has successfully completed the registration of 20,354,513,050 ordinary shares of N0.02 each with the commission.
NAN recalls that MTN Nigeria on May 6 filed an application with SEC and the exchange for listing by introduction.
SEC recently said that it received an application from MTN requesting for registration of their existing securities.
“They have applied for listing by an introduction which will enable the company to be listed and allow shareholders to sell their shares on the floor of the exchange,” Ebelo said.
Mr Henry Rowlands, SEC Acting Executive Commissioner, Corporate Services, told NAN that the commission was committed to working with MTN Nigeria.
“SEC is committed to working with them, when they list by way of introduction naturally it will translate to public offering by and large.
“It’s better that they come to the market even if it’s by way of introduction because it will encourage other service providers to access the market,” Rowlands said.
Reacting to the approval, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd commended SEC for speedy approval.
Omordion said that MTN Nigeria July target for listing would be feasible with the approval, noting that the listing might be concluded before the target date,
NAN reports that MTN Nigeria recently changed its status from a private company to a public liability company (PLC) ahead of its listing on the exchange.
NAN reports that the conversion was one of the requirements for listing on the exchange.
The company had previously announced that it looks to list on the NSE before July, saying it plans to enter the market by way of listing by introduction.
Speaking on the conversion, Fredi Moolman, MTN Chief Executive Officer, said the listing was part of its commitment to localisation in the markets in which it operates.
“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 reaffirmation 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,” Moolman said.
NAN reports that listing on the NSE was one of the conditions reached in the resolution of a N330 billion fine placed on the telco by the Nigerian Communications Commission (NCC) for its inability to disconnect improperly registered SIM cards.
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has urged investors in Nigeria’s oil and gas industry to get listed on the Nigerian Stock Exchange, NSE in order to attract adequate funds required to grow their businesses.
Nigerian Stock Exchange NSE Speaking at the closing gong ceremony at NSE, Lagos recently, Wabote said that indigenous companies and their service counterparts would also benefit from the corporate governance principles demanded from businesses that float their shares on the Exchange.
He stated that listing on the stock market would also change the operating model of the oil and gas industry and enable the pooling of funds for growth, empowerment and inclusion of Nigerians in the activities of the sector, he remarked.
The Executive Secretary noted that oil and gas companies currently listed on the NSE were majorly downstream players and harped on the need for upstream and midstream concerns to also go public.
He stated,
“We see opportunity to collaborate with the Nigerian Stock Exchange to increase the depth and breadth of listings using our 10-year strategy as a driver. For us in the Board, we have commenced multiple strategic initiatives to bring the roadmap into fruition.”
He said that the NCDMB took 30 percent equity in a 5,000 barrels per day modular refinery in order to enable the government refines at least 10 percent of the nation’s oil output, using modular refineries.
Wabote added,
“We see opportunity to divest such equity via the Nigerian Stock Exchange so that Nigerians and other investors can be part owners of such enterprises.”
The Executive Director, Regulations, NSE, Ms. Tinuade Awe who represented the Chief Executive Officer, Mr. Oscar Onyema at the event and commended NCDMB for the remarkable achievements it had recorded in the implementation of the Nigerian Content Act in the oil and gas industry.
The Nigerian stock market maintained its positive performance wednesday, surging further to record a year-to-date growth of 41.9 per cent. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) advanced by 0.38 per cent to close higher at 38,144.02, while market capitalisation added N49.8 billion to close at N13.147 trillion.
The market capitalisation had the N13 trillion mark on Tuesday, barely three weeks after crossing N12 trillion. Yesterday’s positive trend was driving by sustained interest in consumer goods and banking stocks such as Nestle Nigeria Plc, Guinness Nigeria Plc and Guaranty Trust Bank Plc.
In all, 21 stocks appreciated compared with 23 stocks that depreciated. However, volume and value traded rose 50.6 per cent and 20.3 per cent to 328.7 million shares and N6.1 billion respectively.
According to analysts at Meristem Securities Limited, “despite the profit taking activities on some stocks, the market’s gain recorded at the close of trades may be attributed to the sustained rally on some large cap tickers in the consumer goods space.”
Guinness Nigeria Plc led the price gainers, rising by 10.2 per cent to close at N87.50 per share, trailed by Jaiz Bank Plc, which advanced by 10 per cent.
Guinness Nigeria is currently raising N39.70 billion from existing shareholders through a Rights Issue. The Managing Director of the company, Mr. Peter Ndegwa recently told the capital market community that the money would optimise the company’s balance sheet for future growth and continue to deliver higher returns to investors.
“The proceeds of the offer would help the company repay outstanding loan obligations, improving the operational and financial flexibility. It will also allow the company to deliver on its strategic objectives and give all our shareholders a unique opportunity to increase their shareholding in the company. Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimize our balance sheet and improve the company’s financial flexibility,” Ndegwa said.
Meanwhile, Nigerian Aviation Handling Company Plc closed as the third highest price gainer, chalking up 9.9 per cent. Dangote Flour Mills Plc appreciated by 9.5 per cent, while Vitafoam Nigeria Plc garnered 5.02 per cent.
Conversely, Champion Breweries Plc led the price losers with 9.3 per cent, trailed by Livestock Feeds Plc with 5.0 per cent. Conoil Plc and Continental Reinsurance Plc went down by 4.5 per cent apiece among others.
MTN Nigeria will list its shares on the Nigerian Stock Exchange in 2017, the telecoms giant said on Thursday. Stanbic IBTC Capital Limited (together with its affiliates, The Standard Bank of South Africa Limited and Standard Advisory London Limited) and Citigroup Global Markets Limited have been appointed as the joint transaction advisors and joint global coordinators for the listing.
Stanbic will be the lead issuing house.
A full syndicate including Nigerian receiving agents, Nigerian receiving banks and other advisers will be appointed “in due course”, the company said, maintaining, however, that the proposed listing “would be subject to suitable market circumstances and conditions and the appropriate approvals from relevant regulators and other stakeholders”.
It earlier announced its intention to list after the reduction of its fine by the Nigerian Communications Commission (NCC) but did not give a specific time. MTN Nigeria’s fine for failing to disconnect unregistered subscribers was reduced from N1.4 trillion to N330 billion after a series of negotiations.
It then announced that as part of the settlement arrangement, it would list its shares on the NSE “as soon as commercially and legally possible”.
“MTN Nigeria is pleased to announce that its Board of Directors has resolved to proceed with preparations for a listing of MTN Nigeria on The NSE as soon as commercially and legally possible and has established a management task team with the responsibility to guide the company towards a listing. At present, MTN Nigeria is targeting that the listing takes place during 2017, subject to suitable market conditions,” the statement from its group corporate affairs said.
MTN Nigeria is the biggest operator in Nigeria and its eventual listing is expected to boost the Nigerian capital market and create wealth for Nigerians. The group announced its first half-year (H1) loss in at least 20 years following the NCC fine.
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