At the MTN Group’s investor update conference call, Rob Shuter, President and Chief Executive Officer (CEO) of South African originated telecommunications company, MTN, said it would list on the Nigerian Stock Exchange (NSE) in the first half of 2019.
Shuter made known that MTN has decided to pursue the listing by means of a listing by introduction, which is phase one of the planned Initial Public Offering (IPO).
Again, Shuter disclosed that after phase one, which would be completed by the first half of 2019, the shares would be open to Nigerian investors as part of the second phase of the listing.
“We have decided though to pursue the listing by means of a listing by introduction. It is phase one. It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,” Shuter said.
He further said, that MTN in phase 2, will be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more free float of about 35 per cent.
“We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 per cent than the free float we have today which is around 20 per cent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.” he added.
Elaborating on how listing by introduction works, the Chief Executive Officer, Enterprise Stockbrokers, Rotimi Fakayejo said, this meant MTN would approach the NSE with its existing shareholders and gradually introduce the shares to the public.
“They may likely be mandated to sell on the first day of listing and then they can start selling gradually to interested investors. They might now decide to do offer for sale, which is selling from existing shareholders to the public; they may be able to achieve the required float in the market in order for them to accelerate the process of getting listed.” Fakayejo said.