Investors Take Positions in MTN Nigeria after Tariff Hike
Equities investors are currently taking positions in MTN Nigeria Plc in the stock market with an early gain of 10%, according to data obtained from the Nigerian Exchange.
One hour after the trading platform opened, the telecom stock increased by 10%. Hence, MTN popularity among alpha seekers has boosted its market value to a maximum allowable for the day as demand spiked.
More than N1 billion of the telecom stock has exchanged hands in the local bourse during early trading hours on Tuesday.
Market sentiments improved following a 50% tariff hike announced by the regulator, the Nigerian Communications Commission, after a long battle for adjustment.
Last week, MTN Nigeria Communications told the Nigerian Exchange Limited and the investing public of the successful completion of its Series 15 and 16 Commercial Paper issuance under the company’s N250 billion Commercial Paper Issuance Programme.
MTN Nigeria said it raised N42.20 billion. The 180-day and 270-day CP were issued at yields of 27.50% and 29.00%, respectively, with an issue date of Monday, 23 December 2024.
This follows the successful completion of two prior commerical issuances in the last two months, adding that the proceeds will be applied towards the company’s short-term working capital requirements.
Commenting, MTN Nigeria’s Chief Executive Officer, Karl Toriola, said, “We are grateful for the success of this transaction, which underscores investor confidence in MTN Nigeria’s business model and management team.
“The CP Issuance is part of our established funding strategy and would not have been possible without the unwavering support of the investor community, as well as our advisers.”
Stanbic IBTC Capital Limited acted as the arranger and dealer, while CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited served as joint dealers on the transaction. #Investors Take Positions in MTN Nigeria after Tariff Hike Diri Signs 2025 Budget Into Law
