A latest report has now indicated that the Nigerian Stock Exchange, NSE, must have approved the listing of MTN Nigeria shares on the bourse.
It would be recalled that MTN Nigeria was given the go-ahead by the Nigerian Securities and Exchange Commission, SEC, to list by introduction on the NSE.
The report which cited unnamed sources in within the NSE claimed that the share price will now be N90 per share as opposed to 0.20 kobo per share as reported earlier.
If this information comes turns out to be the truth, the listing will make MTN Nigeria the most valuable company after Dangote Cement Plc with a market capitalization of N1.8 trillion.
What is however clear in the listing is that there will be no initial public offering for now because it is a listing by introduction. In such an arrangement, the company is basically allowing 20% of its shares to be allowed for trading which allows its existing shareholders to be able to sell their shares.
There are obvious reasons MTN is not disposed to an IPO. Apart from various regulatory issues it has faced in the past, there are indications that the company could be averting lackluster fundraising where it might not raise up to what it needs to finance expansion plans. It would be recalled that MTN Ghana’s was only able to raise about 50% of its target.
Yesterday, MTN said it is planning to raise about $555 million through bonds and loans to finance its expansion activities in Nigeria.
The listing will make MTN the only mobile carrier listed on the bourse. Globacom and Bharti Airtel’s local unit are private companies. Analysts in the industry said the listing of MTN could encourage its competitors to consider a similar listing.