MTN Nigeria to Issue Public Offer in November

MTN Nigeria to Issue Public Offer in November

MTN Nigeria Plc has announced a plan to issue a public offer for 575 million shares to retail and institutional investors from this month, according to a statement on Thursday. The new offer is part of the MTN Group’s plan to reduce shareholding in its Nigeria subsidiary by 14%.

However, MarketForces Africa noted that the company’s public offer is coming two years after the telecommunication giant listed its stock on the Nigerian Exchange. It had raised about N90 billion from the Nigerian debt market last month, a statement issued today indicates.

According to the statement, MTN said the offer will take place via book building for institutional investors and at a fixed price to retail investors. Valued by investors on the Nigerian Exchange at N3.574 trillion, MTN Nigeria share trades at N176.50 early on Thursday at the local bourse.

The public offer is expected to close exactly a month. MTN said the offer will end in December 2021.

“This is the first step in MTN group’s previously communicated intent to sell down about 14% of its current shareholding in MTN Nigeria”, the statement reads.

MarketForces Africa recalls that to raise N89.999 billion from the debt market, MTN Nigerian had obtained the approval of the Securities and Exchange Commission to launch the Series II 10-Year fixed rate bond announced on 21 September 2021.

It said the series II Bond represents the completion of the N200 billion registered shelf programme, added that the bond issuance continues to reinforce its strategy of diversifying its funding sources.

For the bond issuance, the telecommunication company launched the book build in respect of the Series II Bond on 8 October 2021. The telcos announced it has officially raised N89.999 billion bonds due in 2031 at 12.75%.

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