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When Will MTN List its Shares on the NSE?

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When Will MTN List its Shares on the NSE?

MTN Nigeria, Nigeria’s largest telco was in 2015 fined N1.04trillion for failing to disconnect unregistered lines from its network after the expiration of the deadline given by the Nigerian Communications Commissions (NCC) to all mobile and telecom operators in the country.

The Federal Government as a condition for slashing the fine imposed on it by the NCC from $5.2 billion to N330 billion required the company’s shares be listed on the Nigerian Stock Exchange (NSE). Since then, the company has been making plans for a while now to list its shares on the NSE. So when exactly will this happen?

In 2015, Daily Trust had reported,

“MTN would become a Public Liability Company (PLC) in 2016. Accordingly, the company will list its shares on the floor of the NSE by way of public offer for purchase by interested members of the investing public.” 

2016 is over and the company is yet to be listed although this may be blamed on the economic recession.

In 2016, according to the Guardian the listing would happen in 2017 however, a caveat was stated. The article reported,

“South Africa’s telecommunications firm, MTN, will list its shares on the Nigerian Stock Exchange (NSE) in 2017.

MTN, however, says the listing will be subject to suitable market conditions in commercial and legal terms.

MTN, in a statement, says it has appointed Stanbic IBTC Capital Limited (together with its affiliates, The Standard Bank of South Africa Limited and Standard Advisory London Limited) (collectively “Stanbic”) and Citigroup Global Markets Limited (“Citi”) as its joint transaction advisors and joint global coordinators with Stanbic acting as lead issuing house. It added that a full syndicate, including Nigerian receiving agents, Nigerian receiving banks and other advisers would be appointed in due course, as appropriate.”

 

It is now 2017 and for those who have their hopes high that the company’s shares would be listed this year, they may be just a bit disappointed. MTN Chairman and Acting Chief Executive Officer Phuthuma Nhleko said at the recently concluded World Economic Forum (WEF) in Davos, “It’s a work in progress and hopefully within the 12 to 18 month period we will be able to do it.”

The NSE experienced a huge performance decline in 2016. The equities market capitalisation dropped by 6.2 percent dipping from N9.86tn on January 1, 2016, to N9.25tn on December 30, 2016. The Nigerian Stock Exchange All-Share Index (ASI) ended the year at 26874.62 points from 28370.32 points on January 1, 2016, shedding 1,495.7 points within the period. The ASI lost 41 percent in dollar terms, making it the worst performer among 94 indexes tracked by Bloomberg last year. These figures are not encouraging.

So the question, when will MTN list on the Nigerian Stock Exchange? – When the market suits them.

A sports and nature lover, art enthusiast and rookie globe trotter. I'm also in love with Africa, tech and politics.

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