Fidelity bank banner Bayelsa State banner
MTN Nigeria eyes $5.2bn debut listing in July

By Chijioke Ohuocha on 01/03/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 918


MTN plans to list its Nigerian unit worth $5.23 billion by July in a debut IPO on the Lagos bourse and will raise fresh funds to reduce debt, according to pre-IPO presentation seen by Reuters.

MTN aims to raise at least $400 million from the IPO to pay preference shareholders and is preparing to file application to the Securities and Exchange Commission to launch the offer after getting approvals from existing investors last week, sources with knowledge of the matter said.

Nigeria’s biggest telecoms operator plans to go on roadshow between May and June 2018, according to the presentation and list on Nigeria’s bourse between June and July. It will now need to appoint professional parties to the offer.

MTN Nigeria has around 402 million shares in issue, the same amount in preference shares, which it sold at $0.99 in 2007.

As part of the IPO it would split one share into 50 units, to create 20 billion shares, which would be listed on the bourse and set the IPO price via book building.

MTN declined to comment on the IPO.

IPOs dried up in Nigeria after a 2008 crash wiped more than 60 percent off the stock market’s capitalisation. The index has since recovered, gaining 42.3 percent last year and 11 percent so far this year but IPOs have yet to resume.

MTN shares are currently traded over-the-counter in Nigeria at $13, giving it a market value of $5.23 billion, down from $25 billion in 2015 before a Nigerian government fine, sources said.

The company would use the proceeds of the share sale to redeem preference shares issued to existing investors who bought the shares 11-years ago and also cut its dollar exposure.

MTN wants to achieve a “retail friendly” offer price for the IPO, it said in the pre-IPO document, of around 80 naira per share, the average price for shares listed on Nigeria’s bourse.

And it would split its nominal value to 2 kobo from one naira. South Africa’s MTN owns more than 70 percent of MTN Nigeria, which has under 300 existing shareholders.

Africa’s biggest mobile phone operator had planned to list its Nigerian unit in 2017, part of an agreement with the government, but delayed the IPO due to market conditions.

The telecoms firm has now revived those plans and is considering hiring a public relations firm to manage communications ahead of the listing in Nigeria in addition to its South African advisers.

In 2016 the telecom firm said it would list its local unit on the Nigerian Stock Exchange, in a settlement with the Nigerian government over unregistered SIM cards that cost it $1.7 billion fine. (Reuters)

Source News Express

Posted 01/03/2018 11:17:43 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
INEC inaugurates committee to plan 2019 general elections,...

2 women robbed of ‎€5m

For our Paralympic heroes (and falconets), a day...

It’s official: 247 abducted schoolgirls still missing •We...

Shoprite’s annual profit crashes for first time in...

Minimum wage negotiation: Workers running out of patience...

Race for next U.N. Secretary-General enters decisive phase...

Nigeria winning the war against terror —PRESIDENCY •Lambasts...

Expect a cloudy day, with chances of localised...

APC AN IGBO PARTY —Ngige •Dismisses alleged curse...

No sacred cows, automatic ticket for anybody in...

Go for psychiatric test, CAN tells El-Rufai

 

Latest News Dud Cheque: Court orders arrest of Senator Uzodinma APC reschedules presidential primary Schools shut in Anambra as flood disaster takes toll Sen. Dariye picks APC nomination form from prison Police Academy raises alarm over fake admission list Italian priest kidnapped in Niger APC must retain Osun, Buhari advises •Storms Osogbo with other party leaders to canvass votes for Oyetola Politicians in Borno recruiting armed thugs — NSCDC Artificial ripening of fruits causes cancer, liver, kidney diseases — Experts Flood: 30,000 persons displaced in Edo; 42 communities submerged Police warns against vandalism of campaign billboards Japanese billionaire set to be the pioneer tourist to the Moon

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (393,773 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (375,371 views) Shameless Genevieve Nnaji exposes breasts in public (306,840 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (249,585 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (231,073 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,051 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (199,074 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (180,697 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (164,762 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (162,848 views) Lagos plane crash: Journalist releases victims’ names (157,469 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (146,386 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (62) Business & Economy (3,605) Business Verdict (51) Columnists (927) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (546) Features (651) Global Business Monitor (299) International (2,402) Interview (164) Live Commentary (28) Love Matters (143) News (38,945) Opinion (1,103) Pidgin (11) Politics (6,618) Religion (866) Sports (1,693) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

I am Imo State's New Governor -- Okorocha's son-in-law Uche Nwosu...

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement