In a move bound to elicit quiet approval of Nigerian capital market stakeholders, MTN Nigeria Communications Plc (MTNN) said Tuesday that it had obtained the approval of the Securities and Exchange Commission (SEC) for the offer for sale of up to 575 million ordinary shares in MTNN held by the MTN Group
This was contained in a notice signed by the MTNN Company Secretary, Uto Ukpanah, posted on the website of the Nigerian Exchange (NGX) Ltd. on Tuesday in Lagos.
As previously communicated, the offer will be by way of bookbuild to institutional investors (institutional offer), and subsequently, a fixed price to retail investors (retail offer).
“The institutional offer opens today at 12.00 noon, Nov. 23, and closes at 2:00 p.m., on Nov. 26, after which a fixed price will be determined for the retail offer.
“The retail offer is proposed to open after the institutional offer and an announcement will be published in the regard once clearance is obtained from SEC,” it said.
The move by the MTN Group to dilute its shares and bring Nigerians into the shareholding base of the company is bound to elicit the welcoming approval by stakeholders who had alleged that despite making fortunes out of the country that the ownership base of the company remained in South Africa.
GreenWhiteGreen GWG reports that following persistent pressure that the company listed a fraction of its shares in the local stock exchange but critics were unfazed as it was alleged that it was a token too small.
The latest move is bound to elicit a more welcoming approval.