Efe Ebelo, the Head of Corporate Communications of the Securities and Exchange Commission (SEC), has confirmed that telco giant, MTN Nigeria, has formally applied for listing by introduction on the Nigerian Stock Exchange (NSE).
According to Ebelo, MTN’s application is at the moment gaining attention.
“The Securities and Exchange Commission, SEC, can confirm that we are in receipt of an application from MTN requesting for registration of their existing securities.
“They have applied for listing by introduction which will enable the company to be listed and allow shareholders to sell their shares on the floor of the exchange.
“Their application is presently receiving attention.”
Nairametrics had reported that the telco, had successfully converted from a limited liability company to a public limited liability company ahead of its listing on the NSE.
Note that MTN Nigeria‘s Initial Public Offering on the NSE is expected to happen before the end of June this year.
Recall that in March 2019, SEC disclosed that MTN was yet to apply formally for its planned listing on the NSE.
Mary Uduk, the Acting Director-General of SEC, disclosed that there was no paperwork to ascertain MTN’s intention to become a quoted company.
Why SEC’s approval cannot be swept under the carpet: For a company to become a quoted company on the NSE, there are certain requirements that must be met. One of the requirements is filing out a formal application to the Securities and Exchange Commission.
The Securities Exchange Act of 1934, which created the SEC, was designed to restore investor confidence in the capital markets by providing investors and the markets with more reliable information and clear rules of honest dealing.
As contained on the NSE website, companies seeking admission into the Official List of the NSE must, in addition to complying with The Exchange’s rules governing listing, comply with the following:
- The relevant provisions of the Companies and Allied Matters Act 2004,
- Investment and Securities Act 2007 and the SEC rules and regulations,
- as well as any other relevant statutory requirements.
It is pertinent to note that the NSE is the primary and leading platform for the listing and trading of shares in Nigeria.
A look back at what prompted MTN’s listing: MTN’s listing on the Nigerian Stock Exchange (NSE) is part of a settlement agreement for a 2015 offence committed by the telco, over its failure to duly register it’s subscribers as required by the law.
Since the 2015 infraction, the company has been embroiled in a number of other scandals, including the recent ones involving alleged illegal repatriation of funds, and unpaid back taxes.