The local unit of South Africa's biggest telecoms firm MTN Nigeria plans to list its shares on the Nigerian Stock Exchange (NSE) before the end of June this year.
Rob Shuter, President and Chief Executive Officer of MTN Group, while on a conference call with investors said the telecoms firm will be listed by introduction on the local bourse.
“We have decided though to pursue the listing by means of a listing by introduction. It is phase one,” he said.
He noted that the move to list by introduction would enable the company to get listed easily, adding that findings showed that the free float in the Nigerian market would be about 35 per cent.
He said the first phase of the company's listing would be completed by the first half of the year, while the shares would be open to Nigerian investors as part of the second phase of the listing.
“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.
“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.
“We have decided though to pursue the listing by means of a listing by introduction. It is phase one,” he said.
He noted that the move to list by introduction would enable the company to get listed easily, adding that findings showed that the free float in the Nigerian market would be about 35 per cent.
He said the first phase of the company's listing would be completed by the first half of the year, while the shares would be open to Nigerian investors as part of the second phase of the listing.
“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.
“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," the firm's chief said.
A source who declined to be quoted said the method would enable the company to determine the fair value of its stocks before the IPO.
The source said the telecoms company had sold some shares in the country through a special purpose vehicle, which might be converted to MTN Nigeria shares at the NSE.
The Chief Executive Officer, Enterprise Stockbrokers, Rotimi Fakayejo, said this meant MTN Nigerian would approach the NSE with its existing shareholders and gradually introduce the shares to the public.
Explaining how listing by introduction worked, he said, “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.”
A source who declined to be quoted said the method would enable the company to determine the fair value of its stocks before the IPO.
The source said the telecoms company had sold some shares in the country through a special purpose vehicle, which might be converted to MTN Nigeria shares at the NSE.
The Chief Executive Officer, Enterprise Stockbrokers, Rotimi Fakayejo, said this meant MTN Nigerian would approach the NSE with its existing shareholders and gradually introduce the shares to the public.
Explaining how listing by introduction worked, he said, “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.”
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