Nigeria’s telecom giant, MTN Nigeria, is set to be officially introduced on the Nigerian Stock Exchange come Thursday, May 16th, as all relevant processes have been completed.
Sources within the NSE and MTN reportedly disclosed that the telecom operator’s 20.3bn shares will, indeed, start trading this week. Some of the sources were quoted to have said the following:
‘’Yes, I can confirm that we are listing this Thursday.’’– MTN Source
“All I can say is that Nigerian investors will start trading in MTN sometime this week’’– NSE Source
Nairametrics had earlier reported that the company successfully completed the registration of 20.345 billion ordinary shares of N0.02 each with the Securities and Exchange Commission (SEC). Also, commenting on the successful registration, MTN Nigeria‘s CEO, Ferdi Moolman, described the development as a milestone in the company’s listing process.
“I AM EXCITED WE HAVE ACHIEVED ANOTHER MILESTONE IN OUR LISTING PROCESS, AND WE WANT TO THANK THE SEC AND THE CORPORATE AFFAIRS COMMISSION (CAC) FOR SUPPORTING US THROUGH THE PROCESS. WE HAVE NOW BEGUN TO ENGAGE WITH THE NSE TO COMPLETE THE LISTING PROCESS.”-MOOLMAN
MTN’s Q1 report shows growth in revenue – The news of MTN Nigeria‘s NSE debut is coming after the release of its first quarter 2019 report, which indicated that the company recorded steady growth during the period under review.
Specifically, the Q1 report shows that MTN Group‘s biggest market (i.e., MTN Nigeria), recorded a 13.4% increase in service revenue, year on year. Also, the subsidiary’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins also increased by 53.3%.
Upshots – Since the release of the Q1 report, investors have been eagerly anticipating the official commencement of MTN‘s shares trading. Basically, the announcement of steady growth in MTN Nigeria‘s revenue is expected to boost investors’ confidence to buy MTN’s shares with expectations of high dividends payable to shareholders. Similarly, stock brokerage firms should equally be on the line to earn significant fees from the volumes of trade this could provide.