MTN Nigeria Share Price Rises 39% in 6-Month
At N4.783 trillion market valuation on Monday, MTN Nigeria Plc’s share price has gained about 40% after the retail offer that ended in December 2021. Due to steady solid gains, Nigeria’s telecom company has outrun Dangote Cement Plc to become the second most valuable on the local bourse.
MTN Nigeria’s share surge beats market returns which stood at 21% as the local bourse trades like hot cakes. Within the last six months, the telecom company’s share price has gained more than 39% as the stock market sees price appreciation across bellwether tickers.
On Monday, its share price closed at N235, the peak level after its sold share to Nigerian retail investors at N169 in 2021.
The term of the retail offer includes one bonus share for every 20 purchased, an incentive open to retail investors who hold shares for at least 12 months after allotment. READ: MTN Nigeria: Why You Should Not Miss 575mln Shares Public Offer
Recall that MTN listed its Nigerian business in Lagos about three years ago at N90 each, becoming the second-largest stock by market capitalisation.
However, Airtel Africa pushed the Telcos giant down to the third line after the acquisition of minority interests. However, to deepen local participation in the Telcos, MTN Group last year opened its offer for sale to retail investors at N169 per share.
The group announced a decision to sell up to 575 million shares in MTN Nigeria.
The public offer, which closes on December 14, 2021, marks the first phase of a share sale to retail investors where the South African company will seek to sell down its holding in MTN Nigeria to 65% from 78% over time, MTN Group Chief Executive Ralph Mupita said at a roadshow in Abuja.
Due to a positive earnings outlook, the stock is blazing, firing up amidst an improving sentiment in the Nigerian bourse. Rising interest in the telecom giant’s share has lifted its market valuation above the top leader in the cement oligarch family.
The stock has gained strength as investors reacted favourably to its solid earnings report for the financial year 2021, and the first quarter of 2022 where where local shareholders experience an outstanding performance.
Nigeria expects MTN and Mafab Communication to roll out 5G services in August 2022, three months after it awarded licences to them. The Nigerian Communications Commission (NCC) issued 5G licences to MTN Nigeria and Mafab Communications, after payment of $273.6 million each in February. # MTN Nigeria Share Price Rises 39% in 6-Month