MTN files application for listing on Nigerian Stock Exchange
MTN had earlier disclosed it was considering listing its shares on the NSE by way of introduction in the first half of 2019.
MTN Nigeria has sent its listing application to the Nigerian Stock Exchange (NSE), according to a report on Monday by Reuters, which quoted the Nigerian bourse. In February, Rob Shuter, President and Chief Executive Officer of MTN Group, disclosed that the company was considering listing its shares on the NSE by way of listing by introduction in the first half of 2019.
About two weeks ago, MTN Nigeria changed from being a private company to a public liability company (PLC) in fulfilment of one of the requirements for listing on the exchange.
"Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019,” the telecommunications company said last month. “It is a reaffirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them."
The listing by introduction method does not require an Initial Public Offering (IPO). Under an introduction, a company can apply to list existing shares already held by other shareholders. These shares are made available in the open market for trading by other investors. This also means no new shares will be issued and no additional funds will be raised, unlike under an IPO, which is used to raise new capital.
One report said the listing by introduction will enable the company to determine the fair value of its stocks before the IPO. Shuter said MTN's IPO will be the second phase of its listing.
MTN's listing has been in the works since 2016 when the telecoms company reached a deal with the Nigerian government to pay N330 billion ($1.67 billion) over three years to settle a fine imposed on the company for failing to disconnect unregistered subscribers. The telecoms giant has been biding its time for when the conditions are conducive. MTN’s Nigerian unit is the group’s largest and most profitable subsidiary – as well as Nigeria’s largest mobile operator.
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