MTN series 1 offer oversubscribed by 139.47%

The series 1 offer for sale of 575 million shares held by the MTN Group in MTN Nigeria to Nigerian investors was successfully completed and oversubscribed by 139.47%.

The offer saw MTN Group’s shareholding in MTN Nigeria reduced by 3.25% from 78.83% to 75.58%, and was executed through a bookbuild (a short period) to qualified institutional investors and at a fixed price offer to retail investors.

About 6.5 million Nigerians, including the pension funds now own MTN shares directly or indirectly, as the offer was oversubscribed with valid applications for a total of 801.97 million units.

This led to the activation of the approved 15% over-subscription clause of an additional 86.25 million MTN Nigeria shares, according to a statement by the Company Secretary, Uto Ukpanah.

“With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved,” the statement added.

The telco also disclosed that about 114,938 new CSCS accounts were created representing new market participants, most of them women, adding that approximately 76% of successful applicants via digital platforms are women, and 85% are under age 40.

Also, a total of 661.25 million MTN Nigeria shares were allotted while a total of 126,720 retail investors submitted valid applications and received full allotment; and institutional investors including pension funds, insurance companies, asset managers, corporates, and foreign portfolio investors that participated in the bookbuild were allotted 72.09% of their applications.

“We thank the Nigerian authorities for their support of this Offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium,” Ukpanah added.

Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access.

Financial inclusion

Commenting, CEO of MTN Nigeria, Karl Toriola, said: “It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate.

“We are pleased with the level of digital innovation we championed with this offer with the active collaboration of our lead issuing house and the various regulatory bodies.

“Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access.”

Also, the CEO, Nigerian Exchange Limited (NGX), Temi Popoola, said: “NGX is proud to have worked with MTN Nigeria, Chapel Hill Denham and other parties to the transaction in advancing Nigeria’s capital market through the adoption of forward-looking technology.

 “In the NGX era, we are resolute in our commitment to democratize finance in Nigeria in order to ensure every type of investor has access to public markets where they can invest in companies they believe in and reap value.”

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