MTN Nigeria 2021 primary offer was oversubscribed by 139 percent with as many as 6.6 million Nigerians now holding the telco share — directly or indirectly.
For two weeks in December 2021, MTN Nigeria gave the public a buying opportunity to own 575 million shares in the company, at an entry price of N169 per share.
According to MTN, the “offer was 139.47% oversubscribed, activating the allocation of an additional 86.25 million shares”. Despite the oversubscription, MTN said retail shareholders will “receive full allotment” for the shares bought.
This would not be the case for Institutional shareholders under the Bookbuild; they are to receive a pro-rated amount of shares.
The company also disclosed that 114,938 new CSCS accounts were created representing new market participants — most of them women.
Approximately 76 percent of successful applicants via digital platforms are women, and 85 percent are under age 40, the telco giant said.
The Offer was oversubscribed with valid applications for a total of 801.97 million units, leading to the activation of the approved 15% over-subscription clause of an additional 86.25 million MTN Nigeria shares, Uto Ukpanah, the company secretary said via a statement.
“In all, 661.25 million MTN Nigeria shares were allotted. A total of 126,720 retail investors submitted valid applications and received full allotment; and institutional investors including pension funds, insurance companies, asset managers, corporates, and foreign portfolio investors that participated in the bookbuild were allotted 72.09% of their applications,” the statement read.
“This includes Nigerian pension funds representing approximately 6.5 million Nigerian contributors.”
Ralph Mupita, CEO of MTN Group the company is pleased that this offer has given so many Nigerians the opportunity to become owners of MTN Nigeria.
“With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved,” he said.
“We are proud that our Offer was the first Nigerian public offer to use the digital application platform, PrimaryOffer, which enabled wider investor participation across Nigeria. We thank the Nigerian authorities for their support of this Offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium.”
Karl Toriola, CEO of MTN Nigeria said his team is “delighted to welcome so many new shareholders to the MTN family, up 11.6 times from the number before the offer”.
“It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate.
“We are pleased with the level of digital innovation we championed with this offer with the active collaboration of our lead issuing house and the various regulatory bodies. Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access.
“I am particularly pleased that we completed this transaction in an accelerated time frame ensuring new shareholders can realize value almost immediately through participation in our 2021 full-year dividend.”
Bolaji Balogun, CEO of Chapel Hill Denham, the lead issuing house said “Chapel Hill Denham is honoured to have worked with MTN to complete Nigeria’s first digital and predominantly green offering”.
“I wish to thank the SEC, the NGX, the CSCS, all the professional firms and other stakeholders, for delivering a big win for Nigeria’s capital markets in enabling the adoption of PrimaryOffer and this transaction marks a new and exciting future. Over 90% of subscribers to the Offer were first time participants in the capital markets and MTN Nigeria’s strong investment case made this possible.”
Temi Popoola, CEO of the Nigerian Exchange Limited (NGX) CEO, CFA said “NGX is proud to have worked with MTN Nigeria, Chapel Hill Denham and other parties to the transaction in advancing Nigeria’s capital market through the adoption of forward-looking technology”.
“In the NGX era, we are resolute in our commitment to democratize finance in Nigeria in order to ensure every type of investor has access to public markets where they can invest in companies they believe in and reap value.”
MTN Group’s shareholding in MTN Nigeria reduced by 3.25 percentage points, from 78.83% to 75.58%.